3472620 - Not possible to change Tax Procedure for country US

SAP S/4HANA Cloud Public Edition

Veto check is active against Tax Procedure change.

The error "Company code && contains post documents" Message nr:FINS_TAX_VETO_CHECK001 is a preventive measure created by SAP.  

There are two tax procedures in the SAP delivered content for the US, Internal (TAXUSJ) and External (0TXUSX).

The internal procedure is the one where the solution is managed using configuration while the external relies on external tax to determine and calculate taxes. The reason for the difference is that sales and use tax for the US uses jurisdictional taxes (more than 10,000) so it is needed to determine how to best calculate and report taxes to US tax authorities. Since most other countries use VAT, there is only one tax procedure needed.

Both options can be used in Q before going live which means the tax procedure can be changed.

However, once a system moves into production changing the tax procedure is effectively not possible because tax postings have been made. Currently jurisdictions are based on a defined internal structure . If a change were allowed, new structure would have been created. This is why the tax procedure cannot be changed.

If  tax procedures would be changed at this point, it would effectively be a tax reimplementation with far reaching impacts to GL, SD, Purchasing and CO. Besides tax and tax jurisdictions are stored on many master records such as customer, vendor and cost center. So this veto check protects from serious inconsistencies which can be caused by such kind of change.

SAP Help Portal External Sales and Use Tax Calculation Solution (US): FAQ