How To Fix IDCN234 - Enter an output tax code for non-taxable transactions

SAP Error Message - Details

• Message type: E = Error

• Message class: IDCN -

• Message number: 234

• Message text: Enter an output tax code for non-taxable transactions

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

What causes this issue?

You want to calculate tax for a transaction. However, this is not
possible because the accounting closing method in China requires a tax
code for non-taxable transactions.

System Response

How to fix this error?

Check the Customizing settings for

<LS>Financial Accounting</>, under <LS>Financial Accounting Global
Settings -> Tax on Sales/Purchases -> Posting -> Assign Tax Codes for
Non-Taxable Transactions</>.


<LS>Financial Accounting</>, under <LS>Financial Accounting Global
Settings -> Tax on Sales/Purchases -> Posting -> Assign Tax Codes for
Non-Taxable Transactions</>.

<LS>Financial Accounting (New)</>, under <LS>Financial Accounting
GlobalSettings (New) -> Tax on Sales/Purchases -> Posting -> Assign Tax
Codes for Non-Taxable Transactions</>.

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 IDCN234 - Enter an output tax code for non-taxable transactions ?

  The SAP error message IDCN234, which states "Enter an output tax code for non-taxable transactions," typically occurs when you are trying to process a transaction that is classified as non-taxable, but the system requires an output tax code to be specified. This can happen in various scenarios, such as when creating invoices, sales orders, or other financial documents.
  Cause:
  
  Missing Output Tax Code: The transaction is marked as non-taxable, but the system still expects an output tax code to be entered.
  Configuration Issues: The tax configuration in the system may not be set up correctly, leading to the requirement for an output tax code even for non-taxable transactions.
  Document Type Settings: The document type being used may have settings that enforce the requirement of an output tax code.
  
  Solution:
  
  
  Enter an Output Tax Code: If the transaction is indeed non-taxable, you may need to enter a specific output tax code that corresponds to non-taxable transactions. This could be a code that indicates the transaction is exempt from tax.
  
  
  Check Tax Configuration: Review the tax configuration settings in your SAP system. Ensure that the tax codes and conditions are set up correctly for non-taxable transactions. You can do this by:
  
  Navigating to the relevant configuration settings in the SAP IMG (Implementation Guide).
  Checking the tax codes assigned to the relevant transaction types.
  
  
  
  Review Document Type Settings: Check the settings for the document type you are using. Ensure that it allows for non-taxable transactions without requiring an output tax code.
  
  
  Consult with a Tax Specialist: If you are unsure about which tax code to use or how to configure the system, it may be beneficial to consult with a tax specialist or an SAP consultant who can provide guidance based on your specific business requirements and local tax regulations.
  
  
  Related Information:
  
  SAP Documentation: Refer to the official SAP documentation for detailed information on tax configuration and handling non-taxable transactions.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB40 (for maintaining tax codes) and OBYZ (for tax determination).
  User Exits and BAdIs: In some cases, you may need to implement user exits or BAdIs (Business Add-Ins) to customize the behavior of tax determination in your SAP system.
  
  By addressing the above points, you should be able to resolve the IDCN234 error and successfully process your non-taxable transactions in SAP.