How To Fix EK293 - Do not specify a tax code for interest on cash security deposits in USA

SAP Error Message - Details

• Message type: E = Error

• Message class: EK - IS-U Accounts Receivable and Payable

• Message number: 293

• Message text: Do not specify a tax code for interest on cash security deposits in USA

What causes this issue?

If a Jurisdiction Code is used to identify the geographical entity
(federal state, province, county, city and so on) is used for tax
calculation purposes as is usual in the USA, do not specify a tax code
for interest on cash security deposits.

System Response

The system cannot create any correct postings using the current
parameters.

How to fix this error?

Delete the tax code for interest on cash security deposits.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message EK293 - Do not specify a tax code for interest on cash security deposits in USA ?

  The SAP error message EK293, which states "Do not specify a tax code for interest on cash security deposits in USA," typically arises in the context of financial transactions involving cash security deposits in the United States. This error indicates that the system does not allow the specification of a tax code for interest earned on cash security deposits due to regulatory or configuration reasons.
  Cause:
  
  Regulatory Compliance: In the U.S., interest on cash security deposits may not be subject to the same tax treatment as other types of interest income, leading to restrictions in how tax codes can be applied.
  Configuration Settings: The SAP system may be configured to prevent the assignment of tax codes to certain types of transactions, particularly those related to cash security deposits.
  Transaction Type: The specific transaction type being processed may not allow for tax codes to be specified, as it is predefined in the system.
  
  Solution:
  
  Review Configuration: Check the configuration settings in the SAP system related to tax codes and cash security deposits. Ensure that the settings align with U.S. tax regulations.
  Remove Tax Code: If you are attempting to enter a tax code for the interest on cash security deposits, remove it from the transaction. The system should allow the transaction to proceed without a tax code.
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team to understand the specific rules and configurations that apply to cash security deposits in your system.
  User Training: Ensure that users are trained on the correct procedures for handling cash security deposits and the associated tax implications.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this error or provide additional guidance on handling cash security deposits in the U.S.
  Tax Regulations: Familiarize yourself with U.S. tax regulations regarding interest on cash security deposits to ensure compliance.
  Transaction Types: Understand the different transaction types in SAP that may relate to cash security deposits and their tax implications.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in SAP financial modules to further investigate the problem.