How To Fix TU398 - Contract &1 is subject to tax jurisdiction code

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 398

• Message text: Contract &1 is subject to tax jurisdiction code

What causes this issue?

Contract &V1& is subject to a tax jurisdiction code. As a result,
amounts cannot be transferred from the old budget billing plan.

System Response

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

INCLUDE ISU_VERARB OBJECT DOKU ID TX

How to fix this error?

Start budget billing plan adjustment for modified budget billing dates
without amount transfer.

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 TU398 - Contract &1 is subject to tax jurisdiction code ?

  The SAP error message TU398 indicates that a contract is subject to a tax jurisdiction code, which means that the system is enforcing tax jurisdiction rules for the specific contract. This error typically arises in scenarios involving tax calculations, especially in regions where tax jurisdiction codes are mandatory for compliance with local tax regulations.
  Cause:
  
  Tax Jurisdiction Code Requirement: The contract in question is linked to a tax jurisdiction code that is required for tax calculations. This could be due to local tax laws that necessitate the use of specific codes based on the location of the transaction.
  Missing or Incorrect Configuration: The tax jurisdiction code may not be properly configured in the system, or the contract may not have the necessary tax information filled out.
  Contract Type: Certain types of contracts may inherently require tax jurisdiction codes, and if these are not provided, the system will throw this error.
  
  Solution:
  
  Check Contract Details: Review the contract details to ensure that all required fields, especially those related to tax jurisdiction, are filled out correctly.
  Assign Tax Jurisdiction Code: If the contract is missing a tax jurisdiction code, you will need to assign the appropriate code based on the location and nature of the transaction.
  Configuration Review: Ensure that the tax jurisdiction codes are correctly configured in the SAP system. This may involve checking the tax configuration settings in the relevant modules (e.g., SD, MM).
  Consult Tax Regulations: Verify the local tax regulations to ensure compliance and determine the correct tax jurisdiction codes that should be applied.
  User Authorization: Ensure that you have the necessary permissions to make changes to contracts and tax settings in SAP.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates regarding this error message.
  Documentation: Review SAP documentation related to tax jurisdiction codes and contract management for further understanding of how these elements interact.
  Support: If the issue persists, consider reaching out to your SAP support team or consulting with a functional consultant who specializes in tax configuration within SAP.
  
  By addressing the above points, you should be able to resolve the TU398 error and ensure that your contracts are compliant with tax jurisdiction requirements.