How To Fix REEXFI254 - Items with tax code &1 are not distributed in company code &2

SAP Error Message - Details

• Message type: E = Error

• Message class: REEXFI - Messages for Interface to FI

• Message number: 254

• Message text: Items with tax code &1 are not distributed in company code &2

What causes this issue?

You are posting a document with additional account assignment to real
estate objects in opting company code &v2&.
You are using the input tax code &v1& for at least one of these account
assignments. The input tax code refers to account keys that affect input
tax transactions that are <ZH>not exclusively </>designated as
deductible.
However, only transactions that are designated exclusively as deductible
can be processed for taxes in <ZK>Flexible Real Estate Management </>
without your making additional settings.

System Response

For line items with input tax code &v1&, the system does <ZH>not </>
distribute input tax in company code &v2&.

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

How to fix this error?

If you also want to perform input tax distribution for the lines
described above, you need to make further Customizing settings.

Procedure for System Administrators

Change the Customizing settings for tax code &v1& in the following
places:
<DS:SIMG.REFXV_TIVEXFIDEEPTAX>Input Tax Distribution with Multilevel Tax
Codes</>
<DS:TRAN.FTXP>Tax Code</>
<DS:TRAN.OBCN>Change Tax Processing in Accounting</>
INCLUDE RECA_CUSTOMIZED_MESSAGE_INFO OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message REEXFI254 - Items with tax code &1 are not distributed in company code &2 ?

  The SAP error message REEXFI254 indicates that there are items with a specific tax code that are not being distributed in a particular company code. This error typically arises during the execution of financial processes, such as posting documents or running financial reports, where tax codes are involved.
  Cause:
  
  
  Tax Code Configuration: The tax code used in the transaction may not be properly configured for the company code in question. This could mean that the tax code is not valid for the specific company code or that it is not set up to allow distribution.
  
  
  Missing Tax Settings: The company code may not have the necessary tax settings or configurations in place to handle the specified tax code.
  
  
  Document Type Restrictions: Certain document types may have restrictions on the use of specific tax codes, leading to this error.
  
  
  Inconsistent Data: There may be inconsistencies in the master data or transaction data that prevent the system from processing the tax code correctly.
  
  
  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 > Basic Settings > Define Tax Codes).
  Ensure that the tax code in question is correctly defined and is valid for the company code.
  
  
  
  Review Company Code Settings:
  
  Check the configuration for the company code to ensure that it is set up to handle the tax code. This can be done in the same area as above or by using transaction code OBY6.
  
  
  
  Validate Document Types:
  
  Ensure that the document type being used allows for the tax code in question. You can check this in the configuration settings for document types.
  
  
  
  Check Master Data:
  
  Review the master data (such as vendor/customer master records) to ensure that the tax information is correctly maintained.
  
  
  
  Run Tax Reports:
  
  Sometimes running tax reports can help identify issues with tax codes and their configurations. Use transaction codes like S_ALR_87012357 to analyze tax reports.
  
  
  
  Consult SAP Notes:
  
  Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ, OBY6, and others related to tax configuration.
  SAP Documentation: Refer to SAP Help documentation for detailed information on tax code configuration and financial settings.
  Support: If the issue persists after checking the configurations, 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 the cause of the REEXFI254 error and implement the necessary solutions to resolve it.