How To Fix O1655 - Tax code & is not valid for vendor payables. Enter input tax code.

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 655

• Message text: Tax code & is not valid for vendor payables. Enter input tax code.

What causes this issue?

Tax code &V1& is not relevant for calculating taxes on vendor payables.

System Response

Error message. The system checks Table T007A to determine the tax
type. Tax code &V1& has tax type 'A', which is used for receivables
(output tax code).

How to fix this error?

Select a tax code that is used for Input tax. Tax type 'V'.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message O1655 - Tax code & is not valid for vendor payables. Enter input tax code. ?

  The SAP error message O1655 indicates that the tax code you are trying to use for vendor payables is not valid. This typically occurs when the tax code is not set up correctly in the system or is not applicable for the transaction you are trying to process.
  Cause:
  
  Invalid Tax Code: The tax code you are entering may not be defined in the system for the specific transaction type (vendor payables).
  Configuration Issues: The tax code may not be assigned to the relevant tax category or may not be configured for the vendor account.
  Transaction Type: The tax code may not be applicable for the type of transaction you are processing (e.g., it may be set up for sales but not for purchases).
  Vendor Master Data: The vendor master data may not have the correct tax information or may not be set up to handle the specific tax code.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or use the path: SPRO > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Check Tax Codes for Sales and Purchases).
  Verify that the tax code you are trying to use is defined and active for the relevant country and transaction type.
  
  
  
  Review Vendor Master Data:
  
  Use transaction code XK03 to display the vendor master data.
  Check the tax information section to ensure that the vendor is set up with the correct tax classification and that the tax code is applicable.
  
  
  
  Use Correct Tax Code:
  
  If the tax code is indeed invalid for the transaction, you may need to select a different tax code that is valid for vendor payables.
  
  
  
  Consult with SAP Support or Configuration Team:
  
  If you are unsure about the configuration or need to create a new tax code, consult with your SAP support team or the person responsible for SAP configuration in your organization.
  
  
  
  Related Information:
  
  Tax Code Setup: Ensure that tax codes are set up according to local tax regulations and that they are properly assigned to the relevant accounts and transaction types.
  Documentation: Refer to SAP documentation or help files for detailed instructions on tax code configuration and vendor master data management.
  Testing: After making changes, perform a test transaction to ensure that the error does not occur again.
  
  By following these steps, you should be able to resolve the O1655 error and successfully process your vendor payables.