FF724 - Tax entry not possible in this item

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 724

• Message text: Tax entry not possible in this item

What causes this issue?

You can not enter a tax amount in this item since, due to the posting
amount entered and the tax code, a total tax amount of zero has been
calculated.
This could either be due to the fact that the tax code has been defined
with a value of 0%, or because the posting amount entered (that is, the
tax base) is too small.
<ZH>Example:</>
With a tax rate of 15%, a tax amount greater than zero will only be
achieved with a base amount greater than 0.04. With values of 0.03 and
less, it is therefore not possible to enter a tax amount.

How to fix this error?

Only enter tax amounts in conjunction with tax codes for which a
percentage rate not equal to zero has been defined. Make sure that in
documents with several G/L account items you enter the total tax amount
in an item with a sufficiently high posting amount.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF724 - Tax entry not possible in this item ?

  The SAP error message FF724 ("Tax entry not possible in this item") typically occurs during the processing of financial documents, particularly when dealing with tax-related entries in accounts payable or accounts receivable. This error indicates that the system is unable to post a tax entry for a specific line item in a document. Here are some common causes, potential solutions, and related information for this error:
  Causes:
  
  Missing Tax Code: The line item may not have a valid tax code assigned, which is necessary for calculating tax amounts.
  Incorrect Tax Configuration: The tax configuration in the system may not be set up correctly, leading to issues with tax determination.
  Item Type Restrictions: Certain item types (e.g., non-taxable items) may not allow tax entries.
  Document Type Restrictions: The document type being used may not permit tax entries.
  Currency Issues: If there are currency conversion issues or if the tax code is not valid for the currency used, this error may occur.
  Tax Jurisdiction Issues: The tax jurisdiction may not be set up correctly for the transaction, leading to the inability to post tax.
  
  Solutions:
  
  Check Tax Code Assignment: Ensure that the line item has a valid tax code assigned. You can do this by reviewing the document in the relevant transaction (e.g., FB60 for vendor invoices).
  Review Tax Configuration: Verify the tax configuration in the system. This includes checking the tax determination procedure and ensuring that the tax codes are correctly defined in the system.
  Change Item Type: If the item type does not allow tax entries, consider changing it to a type that does, if applicable.
  Document Type Settings: Check the settings for the document type being used to ensure that it allows tax entries.
  Currency Validation: Ensure that the currency used in the transaction is compatible with the tax code and that there are no currency conversion issues.
  Consult with Tax Experts: If the issue is related to tax jurisdiction or compliance, consult with tax experts or your finance department to ensure that all necessary configurations are in place.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like FB60 (Vendor Invoice), FB70 (Customer Invoice), or FBL1N/FBL5N (Vendor/Customer Line Items) to review the documents and their line items.
  SAP Notes: Check SAP Notes for any known issues or patches related to tax processing in your version of SAP.
  Documentation: Refer to SAP documentation or help files for detailed information on tax configuration and posting rules.
  
  If the issue persists after checking these areas, it may be beneficial to involve your SAP support team or a consultant who specializes in SAP financials to further investigate the problem.