How To Fix FT157 - Reduced tax rate should be less than the normal tax rate

SAP Error Message - Details

• Message type: E = Error

• Message class: FT - FI Table Maintenance Error Messages

• Message number: 157

• Message text: Reduced tax rate should be less than the normal tax rate

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FT157 - Reduced tax rate should be less than the normal tax rate ?

  The SAP error message FT157, which states "Reduced tax rate should be less than the normal tax rate," typically occurs in the context of tax calculations in SAP, particularly when dealing with tax codes and rates in financial transactions. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Tax Code Configuration: The error usually arises when the reduced tax rate defined in the tax code is not set correctly. Specifically, the reduced tax rate must be lower than the standard (normal) tax rate for the same tax code.
  Incorrect Data Entry: During the entry of a transaction, if the reduced tax rate is mistakenly entered as equal to or greater than the normal tax rate, this error will trigger.
  Tax Rate Changes: Changes in tax legislation or updates to tax rates may lead to discrepancies if the tax codes are not updated accordingly in the system.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or use the appropriate path in your SAP version) to check the configuration of the tax codes.
  Verify that the reduced tax rate is indeed less than the normal tax rate for the relevant tax code.
  If necessary, adjust the reduced tax rate to ensure it is lower than the normal tax rate.
  
  
  
  Review Transaction Data:
  
  If the error occurs during a specific transaction, review the transaction details to ensure that the correct tax codes are being used and that the rates are applied correctly.
  Correct any data entry errors that may have led to the incorrect application of tax rates.
  
  
  
  Consult with Tax Experts:
  
  If there are changes in tax legislation or if you are unsure about the correct rates, consult with your finance or tax department to ensure compliance with current tax laws.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs and that the tax calculations are correct.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or updates related to tax code configurations and error messages. This can provide additional context or solutions specific to your version of SAP.
  Documentation: Review SAP documentation regarding tax configuration and management to ensure that your settings align with best practices.
  User Training: Ensure that users entering transactions are trained on the correct use of tax codes and the implications of tax rate settings.
  
  By addressing the configuration of tax codes and ensuring that the reduced tax rate is set correctly, you should be able to resolve the FT157 error message in SAP.