How To Fix FX036 - Tax code & contains nondeductible section

FX036 - Overview

• Message type: E = Error

• Message class: FX - Distributed FI Application Messages

• Message number: 036

• Message text: Tax code & contains nondeductible section

What causes this issue?

The tax code &V1& you specified contains a portion not liable to
input tax deduction.

System Response

The item was not stored.

How to fix this error?

The distribution of the tax portion not liable to input tax
deduction to items of the external document is not possible at
present. Therefore, please choose another tax code.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FX036 - Tax code & contains nondeductible section ?

  The SAP error message FX036 indicates that there is an issue with the tax code being used in a transaction, specifically that the tax code contains a nondeductible section. This typically occurs in the context of tax calculations, particularly in countries where certain taxes are not deductible for input tax purposes.
  
  Cause:
  
  Nondeductible Tax Code: The tax code being used has been defined in the system as nondeductible. This means that the tax amount associated with this code cannot be claimed back as input tax.
  Incorrect Configuration: The tax code may not be configured correctly in the system, leading to the error when trying to process transactions.
  Transaction Type: The type of transaction being processed may not be compatible with the tax code used, especially if it involves deductible and nondeductible components.
  
  
  Solution:
  
  
  Review Tax Code Configuration:
  
  Go to the transaction code OB40 (or the relevant configuration path) to check the configuration of the tax code in