How To Fix MN316 - Not possible to determine tax rate for tax code &

SAP Error Message - Details

• Message type: E = Error

• Message class: MN - Message class for subsequent settlement (Purchasing)

• Message number: 316

• Message text: Not possible to determine tax rate for tax code &

What causes this issue?

An error occurred during the determination of the tax rate for tax code
&V1& (where applicable, with tax jurisdiction code &V3&) for company
code &V2&.
The exact source of the error is not known at this point. You will find
this in a previous step when the tax code &V1& first occurs (where
applicable, with tax jurisdiction code &V3&).
Possible reasons:

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

Tax code is invalid
Country data faulty (table T005)
Tax jurisdiction code wrongly maintained
Company code data faulty

System Response

How to fix this error?

If necessary, contact your system administrator.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN316 - Not possible to determine tax rate for tax code & ?

  The SAP error message MN316, which states "Not possible to determine tax rate for tax code &," typically occurs when the system is unable to find a valid tax rate for the specified tax code in the context of a transaction. This can happen for various reasons, and here are some common causes, solutions, and related information:
  Causes:
  
  Missing Tax Code Configuration: The tax code may not be properly configured in the system. This includes missing entries in the tax determination tables.
  Invalid Tax Jurisdiction: The tax jurisdiction may not be set up correctly, or the jurisdiction code may not correspond to the tax code being used.
  Tax Rate Not Defined: The tax rate for the specified tax code may not be defined for the relevant country or region.
  Date Validity: The tax rate may not be valid for the date of the transaction. For example, if a tax rate was changed or updated, the old rate may no longer be valid.
  Master Data Issues: The master data (such as customer or vendor master records) may not have the correct tax classification or may be missing necessary information.
  
  Solutions:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or FTXP) to check the configuration of the tax code.
  Ensure that the tax code is defined and that the relevant tax rates are set up correctly.
  
  
  
  Review Tax Jurisdiction:
  
  Verify that the tax jurisdiction is correctly assigned to the relevant master data (customer/vendor).
  Check the jurisdiction settings in the transaction code OBB8.
  
  
  
  Define Tax Rates:
  
  If the tax rate is missing, you can define it using transaction code FTXP.
  Ensure that the tax rate is valid for the relevant country and that it is active for the date of the transaction.
  
  
  
  Check Date Validity:
  
  Ensure that the transaction date falls within the validity period of the tax rate.
  If necessary, update the tax rate or adjust the transaction date.
  
  
  
  Review Master Data:
  
  Check the customer or vendor master records to ensure that the tax classification is correctly assigned.
  Use transaction codes XD02 (for customers) or XK02 (for vendors) to review and update the master data.
  
  
  
  Consult with Tax Authorities:
  
  If you are unsure about the correct tax rates or codes, consult with your local tax authorities or a tax professional.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  OBYZ: Maintain Tax Codes
  FTXP: Maintain Tax Codes for Sales and Purchases
  OBB8: Maintain Tax Jurisdiction
  XD02: Change Customer Master Data
  XK02: Change Vendor Master Data
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax determination and configuration.
  
  
  Documentation: Refer to SAP documentation or help files for detailed guidance on tax configuration and determination processes.
  
  
  By following these steps, you should be able to identify and resolve the issue causing the MN316 error message in SAP.