How To Fix FF822 - Tax code &1 defined incorrectly; rounding of RevChrg. &2 greater than &3

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 822

• Message text: Tax code &1 defined incorrectly; rounding of RevChrg. &2 greater than &3

What causes this issue?

Tax code &V1& is defined as a reverse charge tax code.
The result of the calculation is a tax amount of &V2&, rather than a
balance of zero. This tax amount exceeds the permitted maximum variance
of &V3&.

System Response

The system assumes that tax code &V1& is not correctly defined.
It is not possible to post using this tax code.

How to fix this error?

Please correct the definition of tax code &V1&. The tax basis amount
(tax information) always contains the same +/- sign as the percentage
for the relevant tax condition. Regarding reverse charge tax codes, see
the field help documentation for the field "EU Code / Code" in
transaction FTXP, "Maintain Tax Codes: Tax Rates", under "Properties",
if you have entered for the output tax a different +/- sign for the
percentage in transaction FTXP, for example.
Examples with the fictional tax base (amount) 1000 (note that this list
- using 10% here - is not complete; there are many other possible
definitions):
1) Both conditions contain the same tax base, and the percentages are
identical. This is incorrect and needs to be corrected.
Definition (price determination schema, that is, 100, 110, and 120 are
the rows in the price determination schema)
100 Tax Base
110 Account key MWS or preferably ESA of 100 10%
120 Account key VST or preferably ESE of 100 10%
Resulting Tax Information (BSET)
Tax base 1000 for row 110 and 1000 for row 120.
Tax 100 for row 110 and 100 for row 120.

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

2) Both conditions contain the same tax basis in terms of their amounts
and relate to the same condition; this is the best solution:
100 Tax Base
110 Account key VST or preferably ESE of 100 10%
120 Account key MWS or preferably ESA of 100 -10%
Resulting Tax Information (BSET)
Tax base 1000 for row 110 and -1000 for row 120.
Tax 100 for row 110 and -100 for row 120.
3) One condition contains -100%, the other condition contains 10%; this
is not what we would actually recommend, but it is not wrong. The second
tax condition consequently uses the tax amount from the first tax
condition as its base; this is correct, as confusing as it may sound:
100 Tax Base
110 Account key VST or preferably ESE of 100 10%
120 Account key MWS or preferably ESA of 110 -100%
Resulting Tax Information (BSET)
Tax base 1000 for row 110 and -100 for row 120.
Tax 100 for row 110 and -100 for row 120.
4) Both conditions contain, in terms of their amounts, different tax
bases, the percentages are not identical, but the tax amounts (as well
as their +/- signs) are the same; this is incorrect and needs to be
changed.
100 Tax Base
110 Account key MWS or preferably ESA of 100 -10%
120 Account key VST or preferably ESE of 110 100%
Resulting Tax Information (BSET)
Tax base -1000 for row 110 and 100 for row 120.
Tax -100 for row 110 and -100 for row 120.
5) Both conditions contain a negative tax base. The percentages are not
identical, but the tax amounts are the same, albeit with different +/-
signs. This is not wrong but nevertheless misleading and ought to be
changed if possible.
100 Tax Base
110 Account key MWS or preferably ESA of 100 -10%
120 Account key VST or preferably ESE of 110 -100%
Resulting Tax Information (BSET)
Tax base -1000 for row 110 and -100 for row 120.
Tax -100 for row 110 and 100 for row 120.
6) The condition is defined positive for the output tax and negative for
the input tax, so that the output tax is posted with the same
debit/credit indicator as the associated tax-relevant line and the input
tax with a different debit/credit indicator. This is incorrect and must
be changed (see 2, for example) because the input tax should be posted
with the same debit/credit indicator as the associated tax-relevant
line.
100 Tax Base
110 Account key VST or preferably ESE of 100 -10%
120 Account key VAT or preferably ESA of 100 10%
Resulting Tax Information (BSET)
Tax base -1000 for row 110 and 1000 for row 120.
Tax -100 for row 110 and 100 for row 120.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF822 - Tax code &1 defined incorrectly; rounding of RevChrg. &2 greater than &3 ?

  The SAP error message FF822 indicates that there is an issue with the tax code configuration, specifically related to the rounding of the reverse charge amount. This error typically arises in scenarios involving tax calculations, particularly when dealing with reverse charge mechanisms in VAT (Value Added Tax) scenarios.
  Cause:
  The error message FF822 is triggered when the rounding of the reverse charge amount exceeds the allowed limit defined in the system. This can happen due to:
  
  Incorrect Tax Code Configuration: The tax code may not be set up correctly in the system, leading to discrepancies in how tax amounts are calculated and rounded.
  Rounding Rules: The rounding rules defined in the system may not align with the expected values for the transaction, causing the calculated amount to exceed the permissible limits.
  Currency Issues: If the transaction involves multiple currencies, rounding differences can occur due to conversion rates or decimal precision settings.
  Transaction Data: The specific transaction data being processed may have values that, when calculated, lead to rounding issues.
  
  Solution:
  To resolve the FF822 error, you can take the following steps:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OB40 (for tax codes) and verify the configuration of the tax code in question. Ensure that the tax code is set up correctly for the relevant country and transaction type.
  
  
  
  Review Rounding Settings:
  
  Check the rounding settings in the configuration. You can do this in the transaction code OBY6 (for defining rounding rules). Ensure that the rounding rules are appropriate for the tax code and the type of transaction.
  
  
  
  Adjust Transaction Data:
  
  Review the specific transaction that is causing the error. Check the amounts involved and see if any adjustments can be made to avoid exceeding the rounding limits.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on tax code configuration and rounding rules. This can provide insights into best practices and common pitfalls.
  
  
  
  Testing:
  
  After making changes, perform test transactions to ensure that the error no longer occurs and that tax calculations are accurate.
  
  
  
  Consult with SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to SAP support for further assistance. They can provide more detailed insights based on your specific system configuration.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB40 (Tax Codes), OBY6 (Rounding Rules), and FB60 (Invoice Entry) for testing.
  SAP Notes: Check for any SAP Notes related to tax code configuration and rounding issues, as these may provide specific fixes or updates.
  Documentation: Review SAP's official documentation on tax handling and configuration for your specific version of SAP.
  
  By following these steps, you should be able to identify and resolve the cause of the FF822 error in your SAP system.