How To Fix FOT_MIGRATION305 - Tax base indicator is different between company code and country

SAP Error Message - Details

• Message type: E = Error

• Message class: FOT_MIGRATION - Tax Migration Messages

• Message number: 305

• Message text: Tax base indicator is different between company code and country

What causes this issue?

Indicator that causes the base amount for the calculation of sales tax
to be reduced by the discount share is different between company code
and country. The rule used to determine the base amount for the
calculation of sales tax is subject to the relevant country legislation.
Either the company code table or the country table is used for control
purposes. If RITA is active, the entries in the company code table are
not valid.

System Response

Migration is not allowed with inconsistent settings.

How to fix this error?

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

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 FOT_MIGRATION305 - Tax base indicator is different between company code and country ?

  The SAP error message FOT_MIGRATION305 indicates that there is a discrepancy between the tax base indicator defined for a company code and the corresponding country settings in the system. This error typically arises during the migration or configuration of tax settings in SAP, particularly when dealing with financial documents or tax reporting.
  Cause:
  The error occurs when:
  
  The tax base indicator set for a specific company code does not match the tax base indicator defined for the country in which the company code operates.
  This mismatch can happen due to incorrect configuration settings in the tax determination process or during the migration of data from legacy systems to SAP.
  
  Solution:
  To resolve the FOT_MIGRATION305 error, follow these steps:
  
  
  Check Configuration Settings:
  
  Go to the SAP Customizing Implementation Guide (IMG) and navigate to:
  
  Financial Accounting (New) > Financial Accounting Global Settings (New) > Tax on Sales/Purchases > Basic Settings > Define Tax Base Indicators.
  
  
  Verify that the tax base indicator for the company code matches the one defined for the country.
  
  
  
  Adjust Tax Base Indicator:
  
  If there is a mismatch, you may need to adjust the tax base indicator for either the company code or the country to ensure they are consistent.
  Make sure that the tax base indicator is correctly assigned to the relevant tax codes used in your transactions.
  
  
  
  Review Migration Data:
  
  If this error occurs during a migration process, review the data being migrated to ensure that the tax base indicators are correctly mapped and aligned with the company codes and countries.
  
  
  
  Test Transactions:
  
  After making the necessary adjustments, perform test transactions to ensure that the error no longer occurs and that tax calculations are functioning as expected.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or notes related to tax configuration and migration for additional guidance and best practices.
  
  
  
  Related Information:
  
  Tax Base Indicator: This is a classification that determines how tax is calculated and reported for transactions. It is essential for compliance with local tax regulations.
  Company Code: This is the smallest organizational unit in SAP for which a complete self-contained set of accounts can be drawn up. Each company code is assigned to a specific country.
  Country Settings: These settings define how taxes are handled in a specific country, including tax rates, tax codes, and tax base indicators.
  
  If the issue persists after following these steps, it may be beneficial to consult with an SAP expert or your organization's SAP support team for further assistance.