How To Fix FITVPS233 - The separation allowance is subject to tax; expense type & is tax-exempt

FITVPS233 - Overview

• Message type: E = Error

• Message class: FITVPS -

• Message number: 233

• Message text: The separation allowance is subject to tax; expense type & is tax-exempt

What causes this issue?

The amount in the receipt you have entered is tax-exempt. However,
either the separation allowance is taxable as per the receipt date, or
the separation allowance is fully taxable (regardless of date).

System Response

Error in the validation check

How to fix this error?

Select a different (taxable) expense type for the amount.

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.

FITVPS233 - Details

• The SAP error message FITVPS233 indicates that there is a conflict in the configuration of a separation allowance in the payroll system. Specifically, it suggests that the separation allowance is being treated as taxable, but the expense type associated with it is configured as tax-exempt. This inconsistency leads to the error when processing payroll.
  
  Cause:
  
  Configuration Mismatch: The separation allowance is set up in the system to be subject to tax, but the expense type linked to it is marked as tax-exempt. This creates a conflict in how the system processes the allowance.
  Incorrect Payroll Schema: The payroll schema may not be correctly configured to handle the tax treatment of the separation allowance.
  Master Data Issues: Employee master data or payroll infotypes may have incorrect settings regarding the separation allowance and its tax treatment.
  
  
  Solution:
  
  
  Review Configuration:
  
  Check the configuration of the separation allowance in the SAP system. Ensure that the tax treatment of the allowance aligns