How To Fix FT196 - Tax code & is not an output tax code

SAP Error Message - Details

• Message type: E = Error

• Message class: FT - FI Table Maintenance Error Messages

• Message number: 196

• Message text: Tax code & is not an output tax code

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FT196 - Tax code & is not an output tax code ?

  The SAP error message FT196 indicates that the tax code specified in a transaction is not recognized as an output tax code. This typically occurs during the processing of financial transactions, such as invoicing or posting, where tax codes are required for calculating taxes.
  Cause:
  
  Incorrect Tax Code: The tax code entered may not be configured as an output tax code in the system.
  Configuration Issues: The tax code may not be properly set up in the tax configuration settings in SAP.
  Transaction Type: The transaction type being processed may not allow for the use of the specified tax code.
  Master Data Issues: The master data for the customer or vendor may not be set up correctly, leading to the use of an invalid tax code.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or FTXP) to check the configuration of the tax code.
  Ensure that the tax code is defined as an output tax code in the relevant tax jurisdiction.
  
  
  
  Verify Transaction Type:
  
  Ensure that the transaction type you are processing allows for the use of the specified tax code.
  
  
  
  Review Master Data:
  
  Check the master data for the customer or vendor involved in the transaction. Ensure that the correct tax classification is assigned.
  
  
  
  Use Valid Tax Code:
  
  If the tax code is indeed incorrect, replace it with a valid output tax code that is configured in the system.
  
  
  
  Consult with SAP Support:
  
  If the issue persists after checking the above points, consider consulting with your SAP support team or a functional consultant who specializes in tax configuration.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  OBYZ: Maintain Tax Codes
  FTXP: Maintain Tax Codes for Sales and Purchases
  OB40: Define Tax Codes for Sales Tax
  
  
  Documentation: Refer to SAP Help documentation for detailed information on tax configuration and troubleshooting tax-related issues.
  User Exits and BAdIs: If custom logic is involved, check for any user exits or BAdIs that might affect tax code determination.
  
  By following these steps, you should be able to resolve the FT196 error and ensure that the correct output tax code is used in your transactions.