Hi All,

We are customizing Tax Jurisdiction for US with code TAXUSJ and during defining Tax Code for US with Tax Jurisdictions, we have defined Tax rates for Acct Key NVV, MW1, VS1.

when we are doing invoicing in EA19, it is showing error that Non-deductible input tax is not supported in Contract Accounting receivable and Payable.

Below Error is coming:

A non-deductible input tax is not supported

Message no. >0169

Diagnosis

You want to create a tax posting for tax code V1 in company code 9001. This tax code was assigned a percentage in Customizing for non-deductible input taxes. However, non-deductible input tax is not supported by the applications supported in Contract Accounting receivable and Payable.

System Response

Error message

Procedure

You cannot post using tax code V1. Check to see whether you are using the right tax code and whether the settings for the tax code are correct. Change the settings or use a different tax code.