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

F5037 - Overview

• 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.

F5037 - Details

• 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