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.