How To Fix TU388 - Sales/purchase tax cannot be determined in invoicing with BB procedure &2

SAP Error Message - Details

• Message type: E = Error

• Message class: TU - Billing/Scheduling/Budget Billing

• Message number: 388

• Message text: Sales/purchase tax cannot be determined in invoicing with BB procedure &2

What causes this issue?

In Customizing, the setting you made for tax determination
<LS>(sales/purchase tax determination in invoicing)</> are only valid
when used in connection with the partial bill procedure (budget billing
procedure 2) or with the payment plan (budget billing procedure 3).
However, budget billing procedure &V2& is entered in contract account
&V1&.

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

System Response

INCLUDE ISU_VERARB OBJECT DOKU ID TX

How to fix this error?

Check the budget billing procedure in contract account &V1&
Check the tax determination settings
INCLUDE ISU_PENCIL OBJECT DOKU ID TX

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 TU388 - Sales/purchase tax cannot be determined in invoicing with BB procedure &2 ?

  The SAP error message TU388 indicates that the system is unable to determine the sales or purchase tax during the invoicing process when using the "BB" (Business-to-Business) tax procedure. This can occur for various reasons, and understanding the cause and potential solutions is essential for resolving the issue.
  Causes of Error TU388
  
  
  Tax Configuration Issues: The tax codes or tax determination procedures may not be correctly configured in the system. This includes missing or incorrect tax rates, tax codes, or tax categories.
  
  
  Master Data Issues: The customer or vendor master data may not have the necessary tax information. For example, the tax classification for the customer or vendor may be missing or incorrect.
  
  
  Transaction Data Issues: The specific transaction (sales order, purchase order, etc.) may not have the correct tax information or may be missing relevant data that is needed for tax determination.
  
  
  Country-Specific Settings: Different countries have specific tax regulations, and if the country settings are not properly configured, it can lead to this error.
  
  
  Tax Jurisdiction: If the tax jurisdiction is not set up correctly or is missing, the system may not be able to determine the appropriate tax.
  
  
  Solutions to Error TU388
  
  
  Check Tax Configuration:
  
  Go to the transaction code OBYZ to review the tax codes and ensure that they are correctly configured.
  Verify that the tax determination procedure is set up correctly for the relevant country and business area.
  
  
  
  Review Master Data:
  
  Check the customer or vendor master records (transaction codes XD02 for customers and XD03 for vendors) to ensure that the tax classification is correctly maintained.
  Ensure that the relevant tax information is filled in for the customer/vendor.
  
  
  
  Examine Transaction Data:
  
  Review the sales or purchase document to ensure that all necessary fields are filled out correctly, including the tax code.
  Check if the document is in the correct status and if all required data is available.
  
  
  
  Country-Specific Settings:
  
  Ensure that the country-specific settings for tax determination are correctly configured. This may involve checking the settings in the country-specific version of SAP.
  
  
  
  Tax Jurisdiction:
  
  If applicable, check the tax jurisdiction settings to ensure they are correctly defined and linked to the relevant master data.
  
  
  
  Consult SAP Notes:
  
  Check for any relevant SAP Notes that may address this specific error. SAP frequently releases updates and fixes for known issues.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to see if the error persists. This will help confirm whether the issue has been resolved.
  
  
  
  Related Information
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ (Tax Codes), XD02/XD03 (Customer Master), MK02/MK03 (Vendor Master), and FB60/FB70 (Invoice Entry).
  Documentation: Review SAP documentation related to tax determination procedures and configuration for your specific version of SAP.
  Support: If the issue persists after checking the above areas, 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 TU388 error and implement the necessary solutions to resolve it.