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Default tax code for Germany-Accounting error

Former Member
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Hello Experts,

My client (Germany) wants to raise a debit memo for their customer in UK for which a tax of 16% is charged. But, my client now wants it to be changed to 0%. I have suggested to mark the deletion for the existing condition record for "country/Dest country" with the tax code A1 so that the system will automatically pick the next record maintained for exports i.e Country/dest county/Tax class-C/Tax classification-M-0% with the tax code A5.

By doing so the tax got picked rightly but the system is throwing message : "Tax statements line missing for the tax code A1" i have checked all the settings and also tried few test cases and found that the system is not allowing to enter any other code other than A1.

One Observation i have made is, after saving the billing document..other than YMWS codition type other pricing condition types (ex..YPM1) are picking the tax code A1 with G/L accounts (can see at the bottom of the condition when double clicked in the pricing conditions after saving the billing doc) but for YMWS A5 is picked without G/L accounts.???

Can any one suggest what could be the settings from which the default tax code is getting picked from ..There is no tax jurisidication nor this order is throgh EDI..But i am not sure if any Tax interfaces and linked to (please also let me know howto check if any interfaces are existing)

Sorry if elaborated more than required...but tried my best to explain.. its an high production issue now and appreciate prompt reply..


Edited by: Lakshmipathi on Dec 25, 2011 2:12 PM

Removed the text URGENT from subject

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Answers (3)

Answers (3)

Former Member
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Thanks all

Former Member
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Thanks for all your suggestions.

I have resolved this by my self. Actually, there was another freight condition maintained below this condition type which is carrying the tax tye A1 hence the system is throwing this message.

Active Contributor
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Just create a new tax code in FTXP with nil tax. Assign this in condition record with different combination; say by differentiating the material tax classification.

Now in sale order, at line item level, change that tax classification so that the tax component will become zero

G. Lakshmipathi

ps: in subject please dont use URGENT

Former Member
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Hello Lakshmipathi,

Thanks for your prompt reply and your point noted.

Actually we have another tax code A5 with zero percent tax. I am facing this problem when i am assigning this tax code for other the condition record and raising a new sales order.

Not understanding what could be the reason for the system to take the tax code A1 as default.

System is not allowing to enter another tax code except A1 (16%)

Thanks in advance......

Former Member
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Did anyone faced this issue waiting for any resolution...

Active Contributor
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If you want to use 0% tax for particular tax code, maintain the tax code in Allocate Company Code for Non Taxable Transactions. Use Tcode OBCL for this.

Before you proceed further, few things need to kept in mind:

- The condition record used should have validity starting earlier to service render date mention in invoice.

- Once Tax code is change, ignore the warning message to save the condition record.

- After maintaining condition record, do pricing update in billing doc, preferably, new pricing if manual pricing not involved.

Try and share your feedback.