Not able to Post downpayment document to accounting.

Hi Gurus,

I am facing problem at the time of posting an downpayment request to accounting for few of the service materials.

The error is as follows in details,

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No VAT registration numbers are allowed for down payments/requests

Message no. FS229

Diagnosis

You entered a tax code for a down payment or down payment request which is defined as an EC tax code.  This is not permitted, since this posting is not subject to EC tax.  A tax statement requirement exists upon the delivery of goods to a foreign EC country, but not, however, upon receipt of the down payment.

System Response

The system does not allow the tax code.

Procedure

Use a different tax code or EC-identifier.

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What changes for TAX configuration I need to carry out to remove this error.

Thanks

Regards

Vinod Naik