How To Fix FINS_CFIN_DEFTAX037 - Source system &1 does not support deferred tax in Central Finance.

SAP Error Message - Details

• Message type: E = Error

• Message class: FINS_CFIN_DEFTAX - Central Finance: Deferred Taxes

• Message number: 037

• Message text: Source system &1 does not support deferred tax in Central Finance.

What causes this issue?

You tried to run the deferred tax postprocessing report for a company
code of source system &V1&. This system does <ZH>not</> support deferred
taxes in the initial load of Central Finance yet.

System Response

The system did <ZH>not</> start the postprocessing of deferred tax data
for company codes of source system &V1&.

How to fix this error?

You have to implement SAP note 2844296 (Deferred Tax - Activation in
Source Systems) and all its prerequisite SAP notes in the source system.
Then, you have to repeat the initial load for company codes of this
source system.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FINS_CFIN_DEFTAX037 - Source system &1 does not support deferred tax in Central Finance. ?

  The SAP error message FINS_CFIN_DEFTAX037 indicates that the source system specified does not support deferred tax functionality in Central Finance (CFIN). This error typically arises when there is an attempt to transfer data related to deferred tax from a source system that is not configured to handle such transactions.
  Cause:
  
  Source System Configuration: The source system may not be set up to manage deferred tax. This could be due to missing configurations or settings that enable deferred tax processing.
  Version Compatibility: The version of the source system may not support the deferred tax functionality required by Central Finance.
  Data Transfer Issues: There may be issues with the data being transferred from the source system, such as missing or incorrect tax codes that are necessary for deferred tax calculations.
  
  Solution:
  
  
  Check Source System Configuration:
  
  Verify that the source system is configured to support deferred tax. This includes checking the tax configuration settings and ensuring that the necessary tax codes are defined.
  Ensure that the relevant tax determination procedures are in place.
  
  
  
  Update Source System:
  
  If the source system is outdated, consider upgrading it to a version that supports deferred tax functionality.
  Apply any necessary patches or updates that may enable deferred tax processing.
  
  
  
  Review Central Finance Settings:
  
  Check the Central Finance configuration to ensure that it is correctly set up to handle deferred tax from the source system.
  Ensure that the mapping of tax codes between the source system and Central Finance is correctly defined.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation for Central Finance and deferred tax to understand the requirements and configurations needed for proper integration.
  
  
  
  Engage SAP Support:
  
  If the issue persists after checking configurations and settings, consider reaching out to SAP support for assistance. They can provide insights specific to your system setup and help troubleshoot the issue.
  
  
  
  Related Information:
  
  Central Finance: Central Finance is a solution that allows organizations to consolidate financial data from multiple source systems into a central SAP S/4HANA system.
  Deferred Tax: Deferred tax refers to taxes that are assessed but not yet paid, often due to timing differences between accounting and tax reporting.
  SAP Notes and Knowledge Base: Check SAP Notes for any known issues or updates related to the error message FINS_CFIN_DEFTAX037. The SAP Support Portal can be a valuable resource for troubleshooting.
  
  By following these steps, you should be able to identify the root cause of the error and implement the necessary solutions to resolve it.