You have posted a journal entry voucher for a e.g. customer invoice and see that a tax event and tax rate were applied, even though there is no tax code being shown in the corresponding invoice.
SAP Business ByDesign.
Reproducing the Issue
- Go to Customer Invoicing work center.
- Go to Invoice Documents view.
- Open the respective invoice.
The following warning message is raised: 'Determination of tax code failed'
- Go to Items tab.
- Go to Taxes.
You see that no product tax code is determined.
- Go to Document Flow tab.
- Open the corresponding journal entry.
- Check the tax lines and see, under details, tax a corresponding tax event and tax rate are determined.
The corresponding tax code that would be used by the system had it's Valid To date set by a user and is no longer valid.
To check the tax code validity, proceed as follows:
- Go to Business Configuration work center.
- Go to Implementation Projects view.
- Open the activity list.
- Open activity Tax on Goods and Services.
- Click Define Tax Codes.
- Filter the list by country and tax event that has been applied in the above mentioned journal entry.
You see that the tax codes mapped to the applied tax event are no longer valid. Both Tax Event and Tax Code have their own validity period, Tax Event is valid but Tax Code is not valid at the time of invoice creation so the system is not able to determine the tax code.
It is recommended to keep a valid tax code mapped to the concerned tax event. This prevents the cases where a tax event is applied without a tax code.
The tax code validity can be maintained via the steps mentioned in the above section. The corresponding validity of a tax event cannot be modified via user interface. These Tax Events are linked to Tax Return submission forms, which are subjected to very precise legal requirements, hence no customizations or modifications are available via user interface.
If you consider that a tax event is no longer valid, please raise an incident to support informing the corresponding tax event, country and the legal requirement notice informing about it's expiratory.
Tax Event. Invoice. Tax Code. Tax Return. Customer Invoice. Supplier Invoice. Project Invoice Request. Sales Order. Journal Entry. , KBA , AP-TTE-GLO , Cross-Country Extensions , How To