How To Fix FX234 - Only tax codes for output tax allowed

SAP Error Message - Details

• Message type: E = Error

• Message class: FX - Distributed FI Application Messages

• Message number: 234

• Message text: Only tax codes for output tax allowed

What causes this issue?

You must enter an output tax code for this account, since this has been
entered as a requirement in the account master record. Code &V1& is not
an output tax code.

System Response

The item is not saved.

How to fix this error?

Change the tax code in the sample item or change the tax category in
the account master record.
<DS:TRAN.FS02>Proceed</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FX234 - Only tax codes for output tax allowed ?

  The SAP error message FX234 "Only tax codes for output tax allowed" typically occurs in the context of tax determination in financial transactions, particularly when dealing with tax codes in sales and distribution (SD) or financial accounting (FI) modules. This error indicates that the system expects an output tax code, but an input tax code has been provided instead.
  Cause:
  
  Incorrect Tax Code: The tax code used in the transaction is defined as an input tax code (used for purchases) rather than an output tax code (used for sales).
  Configuration Issues: The tax configuration in the system may not be set up correctly, leading to the system not recognizing the tax code as valid for the transaction type.
  Transaction Type Mismatch: The transaction being processed (e.g., sales invoice) is expected to have an output tax code, but the system is receiving an input tax code.
  
  Solution:
  
  Check the Tax Code: Verify the tax code being used in the transaction. Ensure that it is an output tax code. You can do this by checking the tax code configuration in the SAP system (Transaction Code: OB40).
  Change the Tax Code: If the tax code is incorrect, change it to the appropriate output tax code that corresponds to the transaction.
  Review Configuration: If the tax code is correct, review the tax configuration settings in the system to ensure that the tax codes are properly defined and assigned to the correct transaction types.
  Consult Documentation: Refer to the SAP documentation or consult with your SAP functional consultant to ensure that the tax codes are set up correctly for your specific business processes.
  Test Transactions: After making changes, test the transaction again to ensure that the error does not reoccur.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like OB40 (for tax code configuration) or FTXP (for tax code maintenance) to check and modify tax codes.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax codes and error FX234.
  User Roles: Ensure that you have the necessary permissions to view and modify tax codes in the system.
  Documentation: Review your organization's tax policies and SAP configuration documentation to ensure compliance with local tax regulations.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or a consultant for further assistance.