How To Fix TXS_MESSAGES037 - Insert a valid tax code

SAP Error Message - Details

• Message type: E = Error

• Message class: TXS_MESSAGES - Tax Service Messages class

• Message number: 037

• Message text: Insert a valid tax code

What causes this issue?

<LS>Tax Code </>TS was inserted for <LS>Automatic Tax Code Selection</>.
This transaction does not support this mode.

System Response

<LS>Tax Code </>cannot be determined by <LS>Automatic Tax Code Selection
</>and taxes are not calculated.

How to fix this error?

Insert a valid tax code.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TXS_MESSAGES037 - Insert a valid tax code ?

  The SAP error message TXS_MESSAGES037, which states "Insert a valid tax code," typically occurs when a user attempts to process a transaction that requires a tax code, but the system cannot find a valid tax code for the specified conditions. This can happen in various modules, such as Financial Accounting (FI) or Sales and Distribution (SD).
  Causes:
  
  Missing Tax Code: The tax code may not be defined in the system for the relevant country or region.
  Incorrect Configuration: The tax configuration may not be set up correctly in the system, leading to the inability to determine a valid tax code.
  Transaction Type: The transaction type being processed may not be associated with a valid tax code.
  Master Data Issues: The master data (e.g., customer/vendor master records, material master) may not have the necessary tax information.
  Tax Jurisdiction: If the system is configured to use tax jurisdictions, the jurisdiction may not be set up correctly.
  
  Solutions:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or similar, depending on your SAP version) to check the tax codes defined for your country.
  Ensure that the tax codes are correctly configured and active.
  
  
  
  Review Master Data:
  
  Check the relevant master data (customer, vendor, or material) to ensure that the appropriate tax classifications are assigned.
  For customers and vendors, verify the tax classification in their master records.
  
  
  
  Transaction Type Validation:
  
  Ensure that the transaction type you are processing is correctly linked to a valid tax code in the configuration.
  
  
  
  Tax Jurisdiction Setup:
  
  If your organization uses tax jurisdictions, ensure that the jurisdiction is correctly set up and linked to the appropriate tax codes.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific configuration settings related to tax codes.
  
  
  
  Testing:
  
  After making changes, test the transaction again to see if the error persists.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ (Define Tax Codes), OBCO (Define Tax Calculation Procedure), and OX19 (Define Tax Jurisdiction).
  SAP Notes: Check SAP Notes for any known issues or patches related to tax code errors.
  User Roles and Authorizations: Ensure that the user has the necessary authorizations to access and modify tax-related configurations.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or a consultant who specializes in SAP tax configuration.