How To Fix FWTM374 - Table &1: Withholding tax type &2 in country &3 uses accumulation

SAP Error Message - Details

• Message type: E = Error

• Message class: FWTM - Messages: Withholding Tax Changeover

• Message number: 374

• Message text: Table &1: Withholding tax type &2 in country &3 uses accumulation

What causes this issue?

You have made system settings such that withholding tax type &V2& uses
accumulation in country &V3& (extended withholding tax ). In classic
withholding tax however, accumulation is not possible.

System Response

After the changeover to extended withholding tax, the system would try
to calculate the withholding tax base amount and the withholding tax
amount using accumulation. Since this was not possible in classic
withholding tax, documents would be treated differently before and
after the withholding tax changeover. In particular, note that afte the
changeover, there are no accumulated values for documents posted before
the changeover.

How to fix this error?

Check the following system settings and adjust them if necessary:
Customizing for extended withholding tax: Definition of withholding tax
types: Type of accumulation
Assignment of withholding tax types/codes (second step in conversion
run)

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FWTM374 - Table &1: Withholding tax type &2 in country &3 uses accumulation ?

  The SAP error message FWTM374 indicates an issue related to withholding tax types and their configuration in the system. Specifically, it points out that a certain withholding tax type in a specified country is set to use accumulation, which may not be compatible with the current operation or configuration you are trying to perform.
  Cause:
  
  Configuration Issue: The withholding tax type in question is configured to use accumulation, which means that the system is expected to accumulate withholding tax amounts over a period (e.g., for a fiscal year).
  Transaction Type: The transaction you are trying to execute may not support the accumulation method for the specified withholding tax type.
  Master Data Settings: The vendor or customer master data may not be set up correctly to handle the specified withholding tax type.
  
  Solution:
  
  
  Check Configuration:
  
  Go to the configuration settings for withholding tax types in SAP (Transaction code: SPRO).
  Navigate to Financial Accounting (New) > Accounts Receivable and Accounts Payable > Withholding Tax > Withholding Tax Types.
  Verify the settings for the withholding tax type &2 in country &3. Ensure that the accumulation setting is appropriate for your business requirements.
  
  
  
  Review Transaction:
  
  Ensure that the transaction you are trying to execute is compatible with the accumulation method. If it is not, consider using a different withholding tax type that does not use accumulation.
  
  
  
  Check Master Data:
  
  Review the vendor or customer master data to ensure that the withholding tax type is correctly assigned and that all necessary fields are filled out.
  Make sure that the withholding tax type is correctly assigned in the vendor/customer master record.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for more detailed information on withholding tax configuration and the implications of using accumulation.
  
  
  
  Testing:
  
  After making any changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Withholding Tax Types: These are specific tax categories that determine how withholding tax is calculated and reported.
  Accumulation: This refers to the method of aggregating withholding tax amounts over a specified period, which can affect how tax is reported and paid.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuration.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP Financial Accounting.