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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message FINS_CFIN_BC_REPORT108 - Indicator "Process Taxes with Higher Tax Rate First" does not match. ?

  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 if the tax rates are not applied as expected.
  
  Solution:
  
  
  Review Tax Configuration: Check the configuration of tax codes in the SAP system. Ensure that the tax codes are set up correctly and that the higher tax rates are prioritized in the configuration.
  
  Navigate to SPRO ? Financial Accounting ? Tax on Sales/Purchases ? Basic Settings ? Define Tax Codes.
  
  
  
  Check Posting Logic: Review the logic used for posting transactions. Ensure that the system is processing higher tax rates first. This may involve checking any custom code or user exits that could affect the posting sequence.
  
  
  Transaction Review: Review the specific transactions that triggered the error. Ensure that the tax rates applied are correct and that they follow the required order.
  
  
  Testing: After making any changes, conduct thorough testing to ensure that the error no longer occurs and that tax calculations are accurate.
  
  
  Consult Documentation: Refer to SAP documentation or notes related to tax processing to ensure compliance with best practices.
  
  
  SAP Support: If the issue persists after checking configurations and logic, consider reaching out to SAP support for further assistance. They may provide specific notes or patches that address this error.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide guidance on tax processing.
  Transaction Codes: Familiarize yourself with transaction codes related to tax configuration and reporting, such as OBYZ (for tax codes) and FBL1N (for vendor line items).
  User Exits and BAdIs: If custom logic is involved, review any user exits or Business Add-Ins (BAdIs) that may affect tax processing.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.