How To Fix FSC1040 - Tax on sales and purchases determination code &1 does not exist

SAP Error Message - Details

• Message type: E = Error

• Message class: FSC1 - FI-CA Extended: Message Class

• Message number: 040

• Message text: Tax on sales and purchases determination code &1 does not exist

What causes this issue?

You have tried to define the tax on sales and purchases determination
code &v1&. This indicator is not entered in the table for determining
the tax on sales/purchases.

System Response

Error message

How to fix this error?

INCLUDE FICA_NA_CUST_1 OBJECT DOKU ID TX

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FSC1040 - Tax on sales and purchases determination code &1 does not exist ?

  The SAP error message FSC1040 indicates that there is an issue with the tax determination code for sales and purchases. This error typically arises when the system cannot find a valid tax determination code for the transaction being processed. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Missing Tax Determination Code: The specified tax determination code does not exist in the system. This could be due to incorrect configuration or missing entries in the tax configuration tables.
  Incorrect Configuration: The tax configuration settings may not be properly set up for the relevant country or region.
  Data Entry Errors: There may be a typo or incorrect entry in the transaction data that references the tax determination code.
  Master Data Issues: The master data (such as customer or vendor records) may not have the correct tax classification or tax codes assigned.
  
  Solution:
  
  
  Check Tax Determination Codes:
  
  Go to the transaction code OB40 (for tax determination) and verify if the tax determination code exists.
  If it does not exist, you may need to create it or correct the existing configuration.
  
  
  
  Review Tax Configuration:
  
  Use transaction code OBYZ to check the tax codes and their assignments.
  Ensure that the tax codes are correctly assigned to the relevant tax determination codes.
  
  
  
  Verify Master Data:
  
  Check the master data for customers and vendors to ensure that the correct tax classifications are assigned.
  Use transaction codes like XD02 (for customers) or MK02 (for vendors) to review and update the tax information.
  
  
  
  Consult with Tax Experts:
  
  If you are unsure about the correct tax determination codes or configurations, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or updates related to tax determination codes. You can search for relevant notes in the SAP Support Portal.
  Documentation: Review SAP documentation on tax configuration and determination to ensure that you are following best practices.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  OB40: Maintain Tax Determination
  OBYZ: Maintain Tax Codes
  FBL1N: Vendor Line Items
  FBL3N: G/L Account Line Items
  FBL5N: Customer Line Items
  
  
  
  By following these steps, you should be able to resolve the FSC1040 error and ensure that your tax determination codes are correctly configured in SAP.