How To Fix O1654 - Tax code & is not valid for customer receivables. Enter output tax code.

O1654 - Overview

• Message type: E = Error

• Message class: O1 - IS-Oil : Message pool exchanges

• Message number: 654

• Message text: Tax code & is not valid for customer receivables. Enter output tax code.

What causes this issue?

Tax code &V1& is not relevant for calculating taxes on customer
receivables.

System Response

The system checks table T007A to determine the tax type. Tax code &V1&
has tax type &V2& which is used for payables (input tax code).

How to fix this error?

Select a tax code that is used for Output tax. Tax type 'A'.

Error message extract from SAP system. Copyright SAP SE.

O1654 - Details

• The SAP error message O1654 indicates that the tax code you are trying to use for customer receivables is not valid. This typically occurs when the system expects a specific output tax code for a transaction, but the provided tax code does not meet the necessary criteria.
  
  Cause:
  
  Invalid Tax Code: The tax code entered may not be defined for the customer or the specific transaction type.
  
  Configuration Issues: The tax code may not be properly configured in the system for the relevant country or region.
  Customer Master Data: The customer master record may not have the correct tax classification or settings.
  Transaction Type: The transaction type may not be compatible with the tax code being used.
  
  
  Solution:
  
  Check Tax Code: Verify that the tax code you are using is valid and active in the system. You can do this by navigating to the tax code configuration in SAP (Transaction Code: OBYZ).
  Review Customer Master Data: Ensure that