How To Fix F5037 - Account & & for deductions/discounts must not be tax-relevant

SAP Error Message - Details

• Message type: E = Error

• Message class: F5 - Document Editing

• Message number: 037

• Message text: Account & & for deductions/discounts must not be tax-relevant

What causes this issue?

The system wants to create an automatic posting for cash discount
deductions or unauthorized deductions in the account in question.
In the company code, no tax adjustment is defined for such deductions
(in table T001 it was specified that the cash discount base is the net
amount). In this case, the account to be posted must not be
tax-relevant.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Correct the master record of the account mentioned above.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message F5037 - Account & & for deductions/discounts must not be tax-relevant ?

  The SAP error message F5037 indicates that there is an issue with the configuration of accounts related to deductions or discounts in the context of tax relevance. Specifically, it means that the account you are trying to use for deductions or discounts is marked as tax-relevant, which is not allowed in this context.
  Cause:
  
  Account Configuration: The account you are using for deductions or discounts is set up in a way that it is considered tax-relevant. This typically happens if the account is configured to post tax amounts or if it is linked to a tax code.
  Transaction Type: The transaction you are trying to execute may not support tax-relevant accounts for deductions or discounts.
  Master Data Issues: The master data for the account or the transaction may not be correctly set up, leading to this error.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account configuration in the SAP system (Transaction code: FS00).
  Verify that the account used for deductions/discounts is not marked as tax-relevant. You can do this by checking the account type and the tax category settings.
  If the account is tax-relevant, you may need to create a new account specifically for deductions/discounts that is not tax-relevant.
  
  
  
  Review Transaction Settings:
  
  Ensure that the transaction type you are using allows for non-tax-relevant accounts for deductions/discounts.
  If necessary, consult the documentation or configuration settings for the specific transaction.
  
  
  
  Adjust Master Data:
  
  Check the master data for the customer/vendor or the specific transaction to ensure that it is set up correctly and does not reference tax-relevant accounts for deductions/discounts.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct account configuration or the implications of changing account settings, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  
  
  Related Information:
  
  SAP Documentation: Refer to SAP Help documentation for detailed information on account configuration and tax relevance.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FS00 (G/L Account Master Record), OB40 (Define Tax Codes), and others that may be relevant to your configuration.
  SAP Notes: Check for any SAP Notes related to this error message for additional guidance or patches that may address the issue.
  
  By following these steps, you should be able to resolve the F5037 error and ensure that your deductions and discounts are processed correctly without tax relevance issues.