How To Fix K5071 - Taxes cannot be posted

SAP Error Message - Details

• Message type: E = Error

• Message class: K5 - CO Reconciliation Ledger

• Message number: 071

• Message text: Taxes cannot be posted

What causes this issue?

In the reconciliation ledger there are CO internal cost flows between
company codes &V1& and &V2&.
These two company codes do not belong to the same <DS:DE.UMKRS>Taxes on
sales/purchases group</>.
This means that allocations between these company codes are relevant
for tax purposes.
However, taxes cannot be posted with a reconciliation posting between
CO and FI.

How to fix this error?

If you still want to make the reconciliation posting, you can ignore
this message.
You also have the option of deactivating this message in future. You do
this by changing the message control for application area K5, message
number 071:
<DS:SIMG.SIMG_CFMENUORK3OBA5>Execute function</>
If either of these company codes is assigned to the wrong tax on sales/
purchasing group, you can change this assignment:
<DS:SIMG.SIMG_CFMENUORFBOBC6>Execute function</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message K5071 - Taxes cannot be posted ?

  The SAP error message K5071, which states "Taxes cannot be posted," typically occurs during the posting of a financial document in SAP, particularly in the context of controlling (CO) or financial accounting (FI). This error indicates that there is an issue with the tax configuration or the way taxes are being handled in the transaction.
  Causes of Error K5071
  
  
  Tax Configuration Issues: The tax codes used in the transaction may not be properly configured in the system. This includes missing tax rates or incorrect settings in the tax determination process.
  
  
  Account Settings: The accounts involved in the transaction may not be set up to allow tax postings. For example, if the account is marked as a non-taxable account, the system will not allow tax postings.
  
  
  Document Type Restrictions: Certain document types may have restrictions on tax postings. If the document type used does not allow tax postings, this error can occur.
  
  
  Missing Tax Jurisdiction: If the tax jurisdiction is not defined or is missing for the relevant area, the system may not be able to determine the correct tax to apply.
  
  
  Currency Issues: If there are currency conversion issues or if the tax amount cannot be calculated due to currency discrepancies, this error may arise.
  
  
  Solutions to Error K5071
  
  
  Check Tax Code Configuration: Verify that the tax codes used in the transaction are correctly configured in the system. Ensure that the tax rates are defined and that the tax code is active.
  
  
  Review Account Settings: Check the account settings for the accounts involved in the transaction. Ensure that they are set up to allow tax postings. This can be done in the account master data.
  
  
  Document Type Review: Ensure that the document type being used allows for tax postings. If necessary, consult with your SAP administrator to modify the document type settings.
  
  
  Tax Jurisdiction Setup: Ensure that the tax jurisdiction is correctly set up in the system. This may involve checking the configuration in the tax determination settings.
  
  
  Currency Check: Review the currency settings for the transaction. Ensure that there are no discrepancies in currency conversion that could affect tax calculations.
  
  
  Consult SAP Notes: Check for any relevant SAP Notes or updates that may address this specific error. SAP frequently releases updates that may resolve known issues.
  
  
  Related Information
  
  Transaction Codes: You may need to use transaction codes like OB40 (for tax code configuration) or FS00 (for account master data) to review and adjust settings.
  SAP Documentation: Refer to SAP Help documentation for detailed guidance on tax configuration and troubleshooting.
  Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert for further assistance.
  
  By following these steps, you should be able to identify and resolve the cause of the K5071 error in SAP.