How To Fix RERACA003 - Opting company code &1 does not allow distributed tax &2

SAP Error Message - Details

• Message type: E = Error

• Message class: RERACA - Messages for Package RE_RA_CA Accounting Interface

• Message number: 003

• Message text: Opting company code &1 does not allow distributed tax &2

What causes this issue?

Distributed tax can only be used in company codes that do not opt.

System Response

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?

Use a different tax group, or check in Customizing if the company code
opts.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RERACA003 - Opting company code &1 does not allow distributed tax &2 ?

  The SAP error message RERACA003 indicates that the opting company code specified does not allow for distributed tax for the specified tax type. This error typically arises in the context of tax calculations in SAP, particularly when dealing with tax distribution across different company codes.
  Cause:
  
  Configuration Settings: The company code may not be configured to allow distributed tax for the specified tax type. This can happen if the tax settings in the configuration do not permit the distribution of tax amounts.
  Tax Type Restrictions: Certain tax types may have restrictions based on the company code settings, which can lead to this error if an attempt is made to apply a tax type that is not allowed.
  Master Data Issues: The master data for the company code or the tax type may not be set up correctly, leading to inconsistencies in tax processing.
  
  Solution:
  
  
  Check Configuration:
  
  Go to the SAP configuration settings for tax (Transaction code: SPRO).
  Navigate to Financial Accounting (New) > Financial Accounting Global Settings (New) > Tax on Sales/Purchases > Basic Settings > Define Tax Types.
  Ensure that the tax type in question is allowed for the opting company code.
  
  
  
  Review Company Code Settings:
  
  Check the settings for the specific company code (Transaction code: OX02).
  Ensure that the company code is configured to allow distributed tax.
  
  
  
  Adjust Master Data:
  
  Review the master data for the relevant vendors, customers, or materials to ensure that the tax information is correctly maintained.
  Make sure that the tax classification and tax codes are correctly assigned.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific details on tax configuration and the implications of distributed tax settings.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as SPRO (for configuration), OX02 (for company code settings), and others related to tax configuration.
  SAP Notes: Check for any SAP Notes related to this error message for additional insights or patches that may address the issue.
  User Roles: Ensure that the user has the necessary authorizations to make changes to tax configurations and company code settings.
  
  If the issue persists after following these steps, it may be beneficial to consult with an SAP functional consultant or your organization's SAP support team for further assistance.