FF726 - This tax code does not contain a non-deductible portion

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 726

• Message text: This tax code does not contain a non-deductible portion

What causes this issue?

The used tax code does not contain a tax percentage for nondeductible
taxes.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Please use another tax code which contains deductible and
nondeductible tax.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF726 - This tax code does not contain a non-deductible portion ?

  The SAP error message FF726, "This tax code does not contain a non-deductible portion," typically occurs during the posting of transactions that involve tax codes in the SAP system. This error indicates that the tax code being used does not have a configuration that allows for a non-deductible portion of the tax to be specified.
  Cause:
  
  Tax Code Configuration: The tax code being used in the transaction is not set up to handle non-deductible tax portions. This can happen if the tax code is configured only for fully deductible taxes.
  Transaction Type: The type of transaction being processed may require a tax code that allows for a non-deductible portion, but the selected tax code does not support this.
  Incorrect Tax Code Usage: The user may have selected an incorrect tax code that does not align with the nature of the transaction.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or use the path: SPRO > Financial Accounting > Tax on Sales/Purchases > Basic Settings > Check Tax Code).
  Verify the configuration of the tax code in question. Ensure that it is set up to allow for non-deductible portions if that is required for your transaction.
  
  
  
  Use the Correct Tax Code:
  
  If the current tax code does not support non-deductible portions, identify and use a different tax code that does. Consult with your finance or tax department to determine the appropriate tax code for your transaction.
  
  
  
  Review Transaction Type:
  
  Ensure that the transaction type you are processing is appropriate for the tax code being used. If necessary, adjust the transaction type or the tax code accordingly.
  
  
  
  Consult Documentation:
  
  Review any relevant documentation or guidelines provided by your organization regarding tax code usage and configurations.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking the configuration and using the correct tax code, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Tax Code Maintenance: Understanding how to maintain and configure tax codes in SAP is crucial for ensuring compliance with tax regulations.
  SAP Documentation: Refer to SAP Help Portal or specific SAP notes related to tax code configuration for more detailed guidance.
  User Training: Ensure that users involved in financial transactions are trained on the correct usage of tax codes to minimize errors.
  
  By following these steps, you should be able to resolve the FF726 error and ensure that your transactions are processed correctly.