How To Fix FS220 - 2 different tax rates were used

SAP Error Message - Details

• Message type: E = Error

• Message class: FS - Messages from Tax Routines / Prenumbered Checks

• Message number: 220

• Message text: 2 different tax rates were used

What causes this issue?

You are entering a posting in foreign currency. In doing so you
manually enter document and local currency amounts. The amounts entered
for taxes thereby produce a different tax percentage in the document
currency as in the local currency. This is not permitted.

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?

Correct the tax amounts in document or local currency, so that the
ratio between the tax amount and the tax base amount, in both document
and local currency, is equal.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FS220 - 2 different tax rates were used ?

  The SAP error message FS220 indicates that two different tax rates have been applied to a single transaction, which is not allowed in the context of the specific financial operation being performed. This error typically arises in scenarios involving tax calculations, such as during invoice processing or when posting financial documents.
  Cause:
  
  Multiple Tax Codes: The transaction may involve multiple line items that have been assigned different tax codes, leading to the application of different tax rates.
  Incorrect Configuration: The tax configuration in the system may not be set up correctly, allowing for conflicting tax rates to be applied.
  Document Type Restrictions: Certain document types may have restrictions on the use of multiple tax rates.
  Master Data Issues: Vendor or customer master data may have inconsistent tax information, leading to the application of different rates.
  
  Solution:
  
  Review Line Items: Check the line items of the transaction to ensure that all items are using the same tax code. If they are not, adjust them to use a consistent tax code.
  Check Tax Configuration: Review the tax configuration settings in the SAP system to ensure that they are set up correctly. This includes checking tax codes, tax rates, and any relevant tax determination rules.
  Document Type Settings: Verify the settings for the document type being used to ensure that it allows for the application of a single tax rate.
  Master Data Review: Check the master data for the involved vendors or customers to ensure that the tax information is consistent and correct.
  Consult with Tax Experts: If the issue persists, it may be beneficial to consult with tax experts or SAP consultants who can provide insights into the specific tax regulations applicable to your organization.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to the FS220 error message.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FB60 (Invoice), FB70 (Customer Invoice), and others that may be involved in the transaction.
  Documentation: Review SAP documentation related to tax configuration and management to ensure compliance with local tax laws and regulations.
  Testing: After making changes, conduct thorough testing to ensure that the issue is resolved and that tax calculations are accurate.
  
  By following these steps, you should be able to identify the cause of the FS220 error and implement a solution to resolve it.