How To Fix 63124 - Commencement previous year, input tax adjustment not permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: 63 - Messages for Real Estate Management

• Message number: 124

• Message text: Commencement previous year, input tax adjustment not permitted

What causes this issue?

The date of initial use is in a previous calendar year. Therefore an
input tax adjustment is not possible.

System Response

The system does not accept your entry.

How to fix this error?

Verify your entries.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 63124 - Commencement previous year, input tax adjustment not permitted ?

  The SAP error message 63124, which states "Commencement previous year, input tax adjustment not permitted," typically occurs in the context of VAT (Value Added Tax) or input tax adjustments in financial transactions. This error indicates that there is an attempt to adjust input tax for a period that is considered closed or finalized, usually the previous fiscal year.
  Cause:
  
  Closed Fiscal Year: The error often arises when a user tries to make adjustments to input tax for a fiscal year that has already been closed. In many accounting systems, once a fiscal year is closed, no further adjustments can be made to ensure the integrity of financial reporting.
  Incorrect Posting Period: The posting period may not be open for the transaction you are trying to process. This can happen if the system settings restrict adjustments to certain periods.
  Configuration Settings: The system may be configured to prevent adjustments to input tax for prior periods, especially if there are legal or compliance requirements.
  
  Solution:
  
  Check Posting Periods: Verify that the posting period for the transaction you are trying to adjust is open. You can do this by navigating to the relevant configuration settings in SAP (Transaction Code: OB52) and checking the status of the posting periods.
  Adjust in Current Period: If the fiscal year is closed, consider making the necessary adjustments in the current fiscal year instead. This may involve creating a new transaction that reflects the adjustment rather than trying to modify the previous year's entries.
  Consult with Finance Team: If you are unsure about how to proceed, consult with your finance or accounting team. They may have specific procedures in place for handling adjustments to prior periods.
  SAP Notes and Documentation: Check SAP Notes or documentation for any specific guidance related to this error message. There may be updates or patches that address this issue.
  
  Related Information:
  
  SAP Configuration: Understanding how your SAP system is configured for VAT and input tax adjustments can help prevent this error. Familiarize yourself with the settings in the Financial Accounting (FI) module.
  Legal Compliance: Be aware of the legal implications of adjusting input tax in your jurisdiction, as there may be strict rules governing how and when these adjustments can be made.
  User Authorization: Ensure that you have the necessary authorizations to make adjustments in the system, as restrictions may be in place based on user roles.
  
  If the issue persists after following these steps, it may be beneficial to reach out to SAP support or your internal IT team for further assistance.