How To Fix FF702 - Iteration not convergent: tax code & net & &

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 702

• Message text: Iteration not convergent: tax code & net & &

What causes this issue?

You are posting to a company code in which the tax of the net goods
value (reduced by a possible cash discount) and the cash discount of
the net invoice value (gross value reduced by the tax) is to be
calculated. You set the parameters in the company code table.
In the case of the posting entered, you want to calculate the tax from
the gross value and also have the system determine the cash discount
base value. The system now attempts to determine both values, however,
does not have sufficient convergence of the results after a certain
number of arithmetic operations. You can find the last two tax amounts
determined in the status bar.

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?

Enter the tax amount specifically or enter the amount eligible for cash
discount in the open item account line items.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF702 - Iteration not convergent: tax code & net & & ?

  The SAP error message FF702, which states "Iteration not convergent: tax code & net & &," typically occurs during the processing of financial transactions, particularly in the context of tax calculations. This error indicates that the system is unable to converge on a solution for the tax calculation, which can happen for several reasons.
  Causes:
  
  Incorrect Tax Code Configuration: The tax code may not be set up correctly in the system, leading to issues in calculating the tax amount.
  Missing Tax Rates: If the tax rates for the specified tax code are not maintained or are incorrect, the system may fail to calculate the tax.
  Data Inconsistencies: There may be inconsistencies in the master data or transaction data that affect the tax calculation.
  Complex Calculation Logic: If the tax calculation involves complex logic or multiple iterations, it may lead to convergence issues.
  Currency Issues: If there are discrepancies in currency conversion or if the currency settings are not properly configured, it can lead to this error.
  
  Solutions:
  
  Check Tax Code Configuration: Review the configuration of the tax code in the SAP system. Ensure that all necessary settings, such as tax rates and calculation methods, are correctly defined.
  Maintain Tax Rates: Verify that the tax rates for the relevant tax codes are maintained in the system. Update or correct any missing or incorrect rates.
  Review Master and Transaction Data: Check for any inconsistencies in the master data (e.g., vendor/customer master records) and transaction data (e.g., invoices, purchase orders) that may affect tax calculations.
  Simplify Calculation Logic: If possible, simplify the tax calculation logic to reduce the complexity and improve the chances of convergence.
  Check Currency Settings: Ensure that the currency settings are correctly configured and that there are no discrepancies in currency conversion rates.
  Debugging: If the issue persists, consider using debugging tools in SAP to trace the calculation process and identify where the convergence issue occurs.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to the FF702 error. SAP frequently releases updates that may address specific bugs or configuration issues.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB40 (for tax code configuration) and OBYZ (for tax rate maintenance).
  Documentation: Review SAP documentation related to tax calculation and configuration for your specific version of SAP, as there may be version-specific considerations.
  
  If the problem continues after trying the above solutions, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP financials for further assistance.