How To Fix FF827 - Account & & for deductions/cash discounts must not be relevant for tax

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 827

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

What causes this issue?

System Response

The system wants to create an automatic posting for cash discount
deductions or unauthorized deductions in the account in question.

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

In the company code, no tax adjustment is foreseen for such deductions
(for example, because the cash discount base has been defined as the net
amount for the company code). During settlement, postings to this
account are then always without tax.
You have defined for the account that postings without tax are not
allowed. Please define for the account that postings without tax are
allowed (FS02), or use SM30, V_T100C to switch off this message.
In both cases, during settlement, postings to this account are without
tax. If you only switch off the message, during settlement, postings
made to the account are without tax, without you changing settings in
the G/L account master.

How to fix this error?

Correct the master record of the account in question, or switch off the
message.

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 FF827 - Account & & for deductions/cash discounts must not be relevant for tax ?

  The SAP error message FF827 indicates that there is an issue with the configuration of the account in relation to tax relevance for deductions or cash discounts. This error typically arises when you are trying to post a transaction that involves a deduction or cash discount, but the account you are using is set up in a way that conflicts with tax regulations.
  Cause:
  
  Account Configuration: The account in question is configured to be relevant for tax, but it should not be. This is often the case for accounts that are used for deductions or cash discounts, which typically should not have tax implications.
  Transaction Type: The type of transaction being processed may not align with the account settings. For example, if you are trying to post a cash discount to an account that is marked as tax-relevant, it will trigger this error.
  Master Data Issues: The master data for the account or the transaction may not be set up correctly, leading to inconsistencies in how the system interprets tax relevance.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account settings in the SAP system (Transaction Code: FS00).
  Verify that the account is set up correctly. For accounts used for deductions or cash discounts, ensure that the "Tax Relevant" checkbox is unchecked.
  
  
  
  Adjust Transaction Settings:
  
  Review the transaction you are trying to post. Ensure that it is appropriate for the account being used.
  If necessary, change the account in the transaction to one that is not marked as tax-relevant.
  
  
  
  Review Master Data:
  
  Check the master data for the vendor or customer involved in the transaction. Ensure that the settings align with the intended use of deductions or cash discounts.
  Make sure that the relevant tax codes are correctly assigned and that they match the account settings.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct configuration, consult with your finance or accounting team to ensure compliance with tax regulations and internal policies.
  
  
  
  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), FB50 (G/L Account Document Entry), and others that may be involved in the posting process.
  User Exits and BAdIs: In some cases, custom logic may be implemented through user exits or BAdIs that could affect how transactions are processed. Check if any customizations are in place that might be causing the issue.
  
  By following these steps, you should be able to resolve the FF827 error and ensure that your account settings are appropriate for the transactions you are processing.