How To Fix RETMFI032 - &1: jurisdiction-dependent tax is active, enter a jurisdiction code

SAP Error Message - Details

• Message type: E = Error

• Message class: RETMFI - Messages for Posting Terms

• Message number: 032

• Message text: &1: jurisdiction-dependent tax is active, enter a jurisdiction code

What causes this issue?

The system settings require the entry of a jurisdiction code.
A jurisdiction code automatically applies to the lower-level objects.
Therefore, it is sufficient to maintain the jurisdiction code at the
business entity level.
An entry in the lower-level objects (building, land, rental object, or
real estate contract) is only necessary if the jurisdiction code differs
from the higher-level object.
Changes to the jurisdiction code automatically have an effect on all
lower-level objects for which no jurisdiction code was explicitly
defined.

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?

Enter the jurisdiction code (if possible at business entity level).

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 RETMFI032 - &1: jurisdiction-dependent tax is active, enter a jurisdiction code ?

  The SAP error message RETMFI032 indicates that a jurisdiction-dependent tax is active in your system, but a jurisdiction code has not been entered. This typically occurs in scenarios where tax calculations are dependent on specific jurisdictions, such as in the case of sales tax or value-added tax (VAT) that varies by location.
  Cause:
  
  Jurisdiction-Dependent Tax Configuration: The system is configured to require a jurisdiction code for tax calculations, but the code has not been provided in the transaction.
  Missing Jurisdiction Code: The jurisdiction code is either not entered in the relevant fields or is not set up correctly in the system.
  Tax Configuration Issues: There may be issues with the tax configuration in the system, such as missing or incorrect tax codes or jurisdiction settings.
  
  Solution:
  
  Enter a Jurisdiction Code: Ensure that you enter a valid jurisdiction code in the relevant field of the transaction. This code should correspond to the location where the tax is applicable.
  Check Tax Configuration: Review the tax configuration settings in your SAP system:
  
  Go to the transaction code OBYZ (for tax codes) or OB40 (for jurisdiction codes) to verify that the jurisdiction codes are correctly set up.
  Ensure that the jurisdiction-dependent tax settings are correctly configured for the relevant tax types.
  
  
  Update Master Data: If the jurisdiction code is missing in the master data (e.g., customer or vendor master records), update the relevant records to include the jurisdiction code.
  Consult Documentation: Refer to SAP documentation or your organization's tax compliance guidelines to ensure that you are using the correct jurisdiction codes and tax settings.
  
  Related Information:
  
  Jurisdiction Codes: These codes are often used in tax reporting and compliance, and they can vary by state, province, or country.
  Tax Calculation: Jurisdiction-dependent taxes are common in regions with varying tax rates based on location, such as in the United States where sales tax can differ by state and even by city.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues or provide updates related to jurisdiction-dependent tax handling.
  Testing: After making changes, perform a test transaction to ensure that the error is resolved and that the tax is calculated correctly based on the jurisdiction code entered.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a tax consultant familiar with your specific configuration and requirements.