Symptom
Warning message "Item XX: Determination of tax code failed. (XX represents item number)" occurs on a Sales Order or Customer Invoice document.
Environment
SAP Business ByDesign
Reproducing the Issue
-
Go to Sales Orders work center.
- Go to Sales Orders view.
- Edit the sales order PQR. (PQR represents the Sales Order ID)
(or)
- Go to the Customer Invoicing work center.
- Go to the Invoice Documents View.
- Search for the Customer Invoice DEF. (DEF represents the Customer Invoice ID)
- Click on Edit tab.
System shows warning message "Item XX: Determination of tax code failed".
Cause
Some possible causes for this issue are:
- The Tax Rate Type is not maintained on the product master data of the item entered in the document.
- A custom Tax Code was maintained on the activity Tax on Goods and Services without a Tax Rate Type:
Hence, there are 2 Tax Codes for the same Tax Event: the SAP standard Tax Code and also the custom added Tax Code. As the Tax Rate Type was not maintained on the custom code, the system cannot determine which one to pick.
Resolution
For cause 1:
-
Go to Product and Service Portfolio work center.
- Go to Products View.
- Select and edit the Product XYZ. (XYZ represents the Product ID, which was entered on the item XX).
- Navigate to Taxes tab.
- Under Product Tax Classification there are the Tax Type and Tax Rate Type with respect to the Country.
- Maintain the Tax Type and Tax Rate Type correctly and click on Save.
For cause 2:
- Go to Business Configuration work center.
- Go to Implementation Projects view.
- Select the Project and select Open Activity List.
- Open the activity Tax on Goods and Services.
- Click on Define Tax Codes.
- Select the respective tax code for the relevant Tax Event and Country.
- Under Details select Add Row.
- Maintain the Tax Type and Tax Rate Type.
- Click on Save.
The Tax Code should be determined now with no further issues.
Keywords
tax code is not automatically determined; Automatic determination failed; , KBA , tax code is not automatically determined , automatic determination failed , AP-TTE-TC , Tax Calculation , How To