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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message FITVPS233 - The separation allowance is subject to tax; expense type & is tax-exempt ?

  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 with the configuration of the expense type.
  Navigate to the relevant customizing settings in SPRO (SAP Project Reference Object) and verify the settings for the separation allowance and expense types.
  
  
  
  Adjust Expense Type:
  
  If the separation allowance should be taxable, change the configuration of the expense type to reflect that it is subject to tax.
  Conversely, if the expense type should remain tax-exempt, adjust the separation allowance configuration to ensure it is treated as tax-exempt.
  
  
  
  Check Payroll Schema:
  
  Review the payroll schema to ensure that it correctly processes the separation allowance and applies the appropriate tax treatment.
  
  
  
  Update Master Data:
  
  Check the employee master data and payroll infotypes to ensure that there are no incorrect entries related to the separation allowance.
  
  
  
  Testing:
  
  After making the necessary adjustments, run a test payroll to ensure that the error is resolved and that the separation allowance is processed correctly.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide guidance on configuration best practices.
  Documentation: Review SAP documentation related to payroll processing and tax treatment of allowances to ensure compliance with local regulations.
  Consult with SAP Support: If the issue persists after making adjustments, consider reaching out to SAP support for further assistance.
  
  By addressing the configuration mismatch and ensuring that the tax treatment aligns with the intended setup, you should be able to resolve the FITVPS233 error.