How To Fix CNVA_20290_CHECK240 - Deferred taxes are in use for the participating company codes

SAP Error Message - Details

• Message type: E = Error

• Message class: CNVA_20290_CHECK - Message class for company code merge preanalysis

• Message number: 240

• Message text: Deferred taxes are in use for the participating company codes

Deferred taxes are in use for the participating company codes. Please
check the transfer postings for deferred taxes before and after the
conversion and compare the results.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message CNVA_20290_CHECK240 - Deferred taxes are in use for the participating company codes ?

  The SAP error message CNVA_20290_CHECK240 indicates that there is an issue related to deferred taxes in the context of participating company codes. This error typically arises in the context of consolidation processes within SAP, particularly when using the SAP Financial Consolidation (FC) or SAP Business Planning and Consolidation (BPC) modules.
  Cause:
  The error message suggests that deferred taxes are enabled for the company codes involved in the consolidation process. This can lead to complications if the system is not set up to handle these deferred taxes correctly during the consolidation.
  Solution:
  To resolve this error, you can follow these steps:
  
  
  Check Company Code Settings:
  
  Go to the configuration settings for the participating company codes and verify if deferred taxes are indeed activated.
  If deferred taxes are not required for your consolidation process, consider deactivating them for the relevant company codes.
  
  
  
  Review Consolidation Settings:
  
  Ensure that the consolidation settings in your SAP system are configured to handle deferred taxes appropriately. This may involve checking the consolidation rules and ensuring that they align with the accounting practices of the participating company codes.
  
  
  
  Adjust Deferred Tax Treatment:
  
  If deferred taxes are necessary, ensure that the treatment of these taxes is correctly defined in the consolidation settings. This may involve specifying how deferred taxes should be calculated and reported during the consolidation process.
  
  
  
  Consult Documentation:
  
  Refer to the SAP documentation or help guides related to financial consolidation and deferred taxes. This can provide insights into best practices and configuration steps.
  
  
  
  Testing:
  
  After making any changes, perform a test consolidation to ensure that the error does not reoccur and that the deferred taxes are being handled as expected.
  
  
  
  Seek Expert Help:
  
  If the issue persists, consider reaching out to your SAP support team or a consultant with expertise in SAP Financial Consolidation for further assistance.
  
  
  
  Related Information:
  
  Deferred Taxes: These are taxes that are assessed but not yet paid, often due to timing differences between accounting income and taxable income. They can arise from various transactions and need to be managed carefully in financial reporting.
  Consolidation Process: This involves combining the financial statements of multiple entities into a single set of financial statements, which can be complex when dealing with different accounting practices and tax treatments.
  SAP Modules: Familiarity with SAP BPC or SAP FC is essential for understanding how to manage financial consolidations and the implications of deferred taxes.
  
  By following these steps and understanding the context of the error, you should be able to address the CNVA_20290_CHECK240 error effectively.