How To Fix FINS_CFIN_BC_REPORT108 - Indicator "Process Taxes with Higher Tax Rate First" does not match.

FINS_CFIN_BC_REPORT108 - Overview

• Message type: E = Error

• Message class: FINS_CFIN_BC_REPORT - Business Configuration Validations of Report

• Message number: 108

• Message text: Indicator "Process Taxes with Higher Tax Rate First" does not match.

What causes this issue?

The indicator for <LS>Process Taxes with Higher Rate First (HigherRate)
</> 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>Process Taxes
with Higher Rate First</> (checkbox Higher Rate - 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.

FINS_CFIN_BC_REPORT108 - Details

• The SAP error message FINS_CFIN_BC_REPORT108 with the indicator "Process Taxes with Higher Tax Rate First" typically occurs in the context of financial processes, particularly during the posting of transactions that involve tax calculations. This error indicates that the system has detected a mismatch in the order of tax processing, specifically that taxes with higher rates should be processed before those with lower rates.
  
  Cause:
  
  Tax Configuration: The tax codes configured in the system may not be set up correctly, leading to a situation where the system is trying to process lower tax rates before higher ones.
  Transaction Posting Order: The order in which transactions are being posted may not adhere to the required sequence for tax processing.
  Custom Logic: If there are custom developments or enhancements in the tax calculation logic, they may not be handling the tax rates correctly.
  Data Entry Errors: Incorrect data entry during transaction posting can lead to this error, especially