How To Fix FINS_CFIN_BC_REPORT107 - Indicator "Tax not deductible" does not match in source and target.

SAP Error Message - Details

• Message type: E = Error

• Message class: FINS_CFIN_BC_REPORT - Business Configuration Validations of Report

• Message number: 107

• Message text: Indicator "Tax not deductible" does not match in source and target.

What causes this issue?

The indicator for <LS>Tax not deductible (Not ded.)</> for the deferred
tax rule &V2& must be the same in the source and the Central Finance
system.

System Response

How to fix this error?

Procedure for System Administrators

In the Central Finance system, check the indicator for <LS>Tax not
deductible </>(checkbox Not ded. - field &V1&) in
<DS:SIMG.V_T007DT>Define Deferred Tax Rules</> Customizing activity
and compare the value with the source system.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FINS_CFIN_BC_REPORT107 - Indicator "Tax not deductible" does not match in source and target. ?

  The SAP error message FINS_CFIN_BC_REPORT107 with the indicator "Tax not deductible" typically occurs during the Central Finance (CFIN) process when there is a mismatch in tax information between the source system and the target system. This error indicates that the tax treatment of a transaction in the source system does not align with the tax treatment expected in the target system.
  Cause:
  
  Tax Configuration Mismatch: The tax codes or tax treatment settings in the source system may not match those in the target system. This can happen if the tax codes are defined differently or if there are different tax rules applied in the two systems.
  Data Transfer Issues: During the data transfer from the source to the target system, there may be inconsistencies in how tax information is mapped or transformed.
  Customizations: If there are custom developments or enhancements in either system that affect tax calculations, this could lead to discrepancies.
  Master Data Issues: Differences in master data (like vendor or customer tax classifications) between the source and target systems can also lead to this error.
  
  Solution:
  
  Review Tax Configuration: Check the tax configuration in both the source and target systems. Ensure that the tax codes and their respective treatments are consistent.
  Mapping Configuration: Review the mapping configuration in the Central Finance setup. Ensure that the tax codes from the source system are correctly mapped to the corresponding codes in the target system.
  Data Validation: Validate the data being transferred. Look for any discrepancies in the tax amounts or codes in the source documents.
  Custom Code Review: If there are any custom developments related to tax processing, review them to ensure they are functioning correctly and consistently in both systems.
  Master Data Synchronization: Ensure that the master data related to tax (like vendor/customer tax classifications) is synchronized between the source and target systems.
  Consult SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide guidance on configuration settings.
  
  Related Information:
  
  Central Finance Documentation: Review SAP documentation related to Central Finance for best practices on tax handling and configuration.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  SAP Support: If the issue persists, consider reaching out to SAP Support for assistance, providing them with detailed information about the error and the configurations in both systems.
  
  By addressing the configuration and mapping discrepancies, you should be able to resolve the error and ensure that tax information is correctly processed in the Central Finance environment.