How To Fix FF707 - Tax entered incorrect (code &1, amount &2), correct &3 &4

FF707 - Overview

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 707

• Message text: Tax entered incorrect (code &1, amount &2), correct &3 &4

What causes this issue?

The system checks the tax amounts for each code on document level.
However, the amounts entered deviate more from the amount calculated
(using the percentage rates defined in the tax code) than is allowed
considering rounding errors.

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?

If this message is a warning message, you can confirm that your entry
is correct by pressing "Continue".
If this message is an error message, you should correct the tax amounts
or the base amounts, depending on how your tax code is defined.

Error message extract from SAP system. Copyright SAP SE.

FF707 - Details

• The SAP error message FF707 indicates that there is an issue with the tax information entered in a financial transaction. Specifically, it suggests that the tax code and amount entered do not match the expected values based on the configuration in the system.
  
  Cause:
  
  Incorrect Tax Code: The tax code entered may not be valid for the transaction or may not be configured correctly in the system.
  Mismatched Tax Amount: The amount of tax entered does not correspond to the tax code or the base amount of the transaction.
  
  Configuration Issues: There may be issues with the tax configuration in the system, such as missing tax rates or incorrect settings in the tax calculation procedure.
  Currency Issues: If the transaction involves multiple currencies, there may be discrepancies in how the tax is calculated or reported.
  
  
  Solution:
  
  Verify Tax Code: Check the tax code entered in the transaction. Ensure that it is valid and appropriate for the type