How To Fix IDFIVAT004 - No tax code found for class '&1' and material '&2'

SAP Error Message - Details

• Message type: E = Error

• Message class: IDFIVAT - FI Localization

• Message number: 004

• Message text: No tax code found for class '&1' and material '&2'

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message IDFIVAT004 - No tax code found for class '&1' and material '&2' ?

  The SAP error message IDFIVAT004 indicates that the system could not find a tax code for a specific tax classification and material. This error typically arises during processes such as invoice verification, goods receipt, or when creating sales orders, where tax calculations are necessary.
  Cause:
  
  Missing Tax Code: The primary reason for this error is that the tax code required for the specified tax classification and material is not defined in the system.
  Incorrect Material Master Data: The material master may not have the correct tax classification assigned.
  Tax Configuration Issues: The tax configuration in the system may not be set up correctly, leading to the absence of a tax code for the specified conditions.
  Country-Specific Settings: The tax code may not be defined for the specific country or region associated with the material.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or SPRO for configuration) to check the tax code settings.
  Ensure that the tax codes are defined for the relevant tax classification and material type.
  
  
  
  Review Material Master Data:
  
  Use transaction code MM03 to display the material master data.
  Check the "Sales Organization Data" and "Accounting" views to ensure that the correct tax classification is assigned to the material.
  
  
  
  Assign Tax Code:
  
  If the tax code is missing, you may need to create or assign a tax code that corresponds to the tax classification of the material.
  This can be done in the configuration settings under Financial Accounting (FI) > Tax on Sales/Purchases > Basic Settings > Define Tax Codes.
  
  
  
  Check Country-Specific Tax Settings:
  
  Ensure that the tax codes are set up for the specific country where the transaction is taking place.
  This can be checked in the same configuration area mentioned above.
  
  
  
  Consult with Tax Experts:
  
  If you are unsure about the correct tax codes or classifications, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  MM03: Display Material Master
  OBYZ: Define Tax Codes
  SPRO: Access SAP Reference IMG for configuration
  
  
  Documentation: Refer to SAP Help documentation for detailed guidance on tax configuration and material master data management.
  Testing: After making changes, perform a test transaction to ensure that the error is resolved.
  
  By following these steps, you should be able to identify and resolve the issue related to the IDFIVAT004 error message in SAP.