How To Fix J1B_ERP032 - Tax rate with 4 decimal places is not set up in this system (code &1, &2)

SAP Error Message - Details

• Message type: E = Error

• Message class: J1B_ERP - Message class for ERP Brazil

• Message number: 032

• Message text: Tax rate with 4 decimal places is not set up in this system (code &1, &2)

What causes this issue?

You have entered a rate with 4 decimal places. However, your system is
not customized for the use of 4 decimal places for this rate.

System Response

The system does not allow the creation of the entry.

How to fix this error?

If applicable, enter a rate with 2 decimal places only.
Alternatively, you can set up your system to use 4 decimal places for
PIS or COFNS rates. For more information, refer to SAP Note 1853059.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message J1B_ERP032 - Tax rate with 4 decimal places is not set up in this system (code &1, &2) ?

  The SAP error message J1B_ERP032 indicates that a tax rate with four decimal places is not configured in the system for the specified tax code and jurisdiction. This error typically arises in scenarios where precise tax calculations are required, such as in certain countries or specific business scenarios.
  
  Cause:
  
  Missing Tax Rate Configuration: The tax rate for the specified tax code and jurisdiction has not been defined in the system with four decimal places.
  Incorrect Tax Code Usage: The tax code being used may not be appropriate for the transaction or may not have been set up correctly.
  System Settings: The system may not be configured to handle tax rates with four decimal places, which can be a requirement in certain regions or for specific types of transactions.
  
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or the relevant configuration path) to check the tax code settings.
  Ensure that the tax code in question is