How To Fix FKKINV587 - Tax amount is greater than tax base amount

SAP Error Message - Details

• Message type: E = Error

• Message class: FKKINV - Invoicing in Contract Accounts Receivable and Payable

• Message number: 587

• Message text: Tax amount is greater than tax base amount

What causes this issue?

Within tax grouping &V1& with the other tax code &V2&, the tax amount is
greater than the tax base amount.

System Response

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

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FKKINV587 - Tax amount is greater than tax base amount ?

  The SAP error message FKKINV587, which states "Tax amount is greater than tax base amount," typically occurs in the context of invoicing and tax calculations within the SAP system, particularly in the area of contract accounts receivable and payable (FI-CA). This error indicates that the tax amount calculated for a particular transaction exceeds the base amount on which the tax is supposed to be applied.
  Cause:
  
  Incorrect Tax Configuration: The tax rates or tax codes may be incorrectly configured in the system, leading to an incorrect calculation of the tax amount.
  Data Entry Errors: Manual entry errors in the invoice or transaction data can lead to discrepancies between the tax base and the tax amount.
  Rounding Issues: Rounding differences in tax calculations can sometimes lead to this error, especially if the tax is calculated based on a percentage of the base amount.
  Multiple Tax Rates: If multiple tax rates are applied to a single transaction, it may result in a total tax amount that exceeds the base amount.
  Custom Logic: Any custom logic or user-exits that modify tax calculations may inadvertently cause this issue.
  
  Solution:
  
  Review Tax Configuration: Check the tax codes and rates in the system to ensure they are set up correctly. Make sure that the tax percentage is appropriate for the base amount.
  Verify Invoice Data: Review the invoice or transaction data for any manual entry errors. Ensure that the base amount and tax amount are correctly entered.
  Check for Rounding Issues: If rounding is an issue, consider adjusting the rounding settings in the tax calculation configuration.
  Analyze Tax Calculation Logic: If there are any customizations or enhancements in the tax calculation logic, review them to ensure they are functioning as intended.
  Consult Documentation: Refer to SAP documentation or notes related to tax calculations for any known issues or updates that may address this error.
  Test with Different Scenarios: If possible, test the invoicing process with different amounts and tax codes to identify the specific conditions that trigger the error.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any specific notes related to FKKINV587, as they may provide additional insights or patches.
  Transaction Codes: Use transaction codes like FB60 (Enter Incoming Invoices) or FBL1N (Vendor Line Item Display) to analyze the transactions that are causing the error.
  Tax Configuration: Review the configuration in the SPRO transaction under Financial Accounting (FI) > Financial Accounting Global Settings (New) > Tax on Sales/Purchases > Basic Settings.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in FI-CA for further assistance.