How To Fix TXS_MESSAGES037 - Insert a valid tax code

TXS_MESSAGES037 - Overview

• 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.

TXS_MESSAGES037 - Details

• 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