How To Fix ICL_CF120 - No tax calculation possible. Tax code is missing

SAP Error Message - Details

• Message type: E = Error

• Message class: ICL_CF - Insurance Solution Claims Settlement/Payment Financial Part

• Message number: 120

• Message text: No tax calculation possible. Tax code is missing

What causes this issue?

You have indicated that the payment item is either a gross amount or a
net amount. However, to enable a
tax calculation, you must also specify a tax code.

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

System Response

The system cannot carry out a tax calculation.

How to fix this error?

Perform one of the following activities:
If you want the system to carry out a tax calculation, specify a tax
code for the payment item.
If you do <ZH>not</> want the system to carry out a tax calculation,
delete the entry in the <ZK>Gross/Net</> field.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message ICL_CF120 - No tax calculation possible. Tax code is missing ?

  The SAP error message ICL_CF120: No tax calculation possible. Tax code is missing typically occurs in the context of tax determination in SAP, particularly when dealing with financial transactions or invoicing. This error indicates that the system is unable to calculate the tax for a transaction because the required tax code is not specified.
  Causes:
  
  Missing Tax Code: The most common cause is that the tax code has not been assigned to the relevant master data (e.g., customer, vendor, material) or the transaction itself.
  Incorrect Configuration: The tax configuration in the system may not be set up correctly, leading to the absence of a valid tax code for the transaction.
  Document Type Issues: The document type being used may not be configured to allow tax calculations.
  Data Entry Errors: There may be errors in the data entry process, such as incorrect or incomplete information in the transaction.
  
  Solutions:
  
  
  Check Master Data:
  
  Ensure that the relevant master data (customer, vendor, or material) has a valid tax code assigned. You can check this in the customer or vendor master records.
  For materials, check the material master data to ensure that the tax classification is set correctly.
  
  
  
  Assign Tax Code:
  
  If the tax code is missing, you can assign a valid tax code to the relevant master data or directly in the transaction where the error occurred.
  
  
  
  Review Tax Configuration:
  
  Go to the tax configuration settings in SAP (transaction codes like OBYZ for tax codes or OB40 for tax determination) and ensure that the tax codes are correctly defined and linked to the appropriate tax categories.
  
  
  
  Check Document Type Settings:
  
  Verify that the document type being used allows for tax calculations. This can be checked in the configuration settings for the specific document type.
  
  
  
  Data Entry Verification:
  
  Review the transaction data for any missing or incorrect entries that could lead to the absence of a tax code.
  
  
  
  Consult SAP Notes:
  
  Check for any relevant SAP Notes or updates that may address known issues related to tax calculations and codes.
  
  
  
  Related Information:
  
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  OBYZ: Maintain Tax Codes
  OB40: Maintain Tax Determination
  FS00: G/L Account Master Data
  XD01/XD02: Customer Master Data
  MK01/MK02: Vendor Master Data
  
  
  
  Documentation: Refer to SAP documentation or help files for detailed guidance on tax configuration and master data management.
  
  
  Testing: After making changes, perform a test transaction to ensure that the tax calculation works as expected.
  
  
  By following these steps, you should be able to resolve the ICL_CF120 error and ensure that tax calculations are performed correctly in your SAP system.