How To Fix RECD032 - No tax codes are defined in the company code

SAP Error Message - Details

• Message type: E = Error

• Message class: RECD -

• Message number: 032

• Message text: No tax codes are defined in the company code

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message RECD032 - No tax codes are defined in the company code ?

  The SAP error message RECD032 indicates that there are no tax codes defined for the specified company code in the system. This error typically arises when you attempt to post a transaction that requires tax information, but the system cannot find any tax codes associated with the company code you are using.
  Cause:
  
  Missing Tax Codes: The primary cause of this error is that tax codes have not been defined for the company code in question.
  Incorrect Company Code: The transaction may be using the wrong company code, which does not have tax codes set up.
  Configuration Issues: There may be issues in the configuration settings related to tax codes and tax determination.
  
  Solution:
  To resolve the RECD032 error, you can follow these steps:
  
  
  Define Tax Codes:
  
  Go to the SAP Easy Access screen.
  Navigate to SPRO (SAP Project Reference Object) > IMG (Implementation Guide) > Financial Accounting > Tax on Sales/Purchases > Basic Settings > Check Tax Code.
  Here, you can define the necessary tax codes for your company code. Make sure to include all relevant tax codes that your business transactions will require.
  
  
  
  Check Company Code Settings:
  
  Ensure that you are using the correct company code in your transaction. You can verify this in the transaction you are trying to execute.
  If you are using a different company code, check if that company code has the required tax codes defined.
  
  
  
  Review Tax Configuration:
  
  Check the configuration settings for tax determination to ensure that they are set up correctly. This includes checking the tax calculation procedure and ensuring that it is assigned to the company code.
  
  
  
  Consult Documentation:
  
  If you are unsure about the tax codes required for your business processes, consult your financial team or refer to local tax regulations to ensure compliance.
  
  
  
  Testing:
  
  After defining the tax codes, perform a test transaction to ensure that the error is resolved and that the tax codes are being applied correctly.
  
  
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like OBYZ (to maintain tax codes) or OB40 (to define tax calculation procedures) to manage tax settings.
  Tax Jurisdictions: Depending on your location, you may need to consider local tax jurisdictions and regulations when defining tax codes.
  Documentation: Always refer to SAP documentation or consult with an SAP FI consultant for detailed guidance on tax configuration.
  
  By following these steps, you should be able to resolve the RECD032 error and ensure that your company code has the necessary tax codes defined for transactions.