How To Fix FZ550 - Item cannot be paid due to inconsistent withholding tax information

SAP Error Message - Details

• Message type: E = Error

• Message class: FZ - Payment Transactions

• Message number: 550

• Message text: Item cannot be paid due to inconsistent withholding tax information

What causes this issue?

The open item displays withholding tax information which differs from
the information in the relevant business partner's master record. For
example, it may be that the number of withholding tax types in the open
item is different from the number of withholding tax types in the
master record.

System Response

The items are not paid.

How to fix this error?

Change the withholding tax data in the open item in question.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FZ550 - Item cannot be paid due to inconsistent withholding tax information ?

  The SAP error message FZ550, which states "Item cannot be paid due to inconsistent withholding tax information," typically arises in the context of financial transactions where withholding tax is applicable. This error indicates that there is a discrepancy or inconsistency in the withholding tax data associated with the item being processed for payment.
  Causes of Error FZ550
  
  
  Inconsistent Withholding Tax Data: The withholding tax information for the vendor or the specific transaction may not match the expected values in the system. This could be due to incorrect configuration or missing data.
  
  
  Missing Tax Codes: The tax codes assigned to the transaction may not be properly defined or may not exist in the system.
  
  
  Incorrect Vendor Master Data: The vendor master record may have incorrect or incomplete withholding tax information.
  
  
  Changes in Tax Regulations: Recent changes in tax regulations may not have been updated in the SAP system, leading to inconsistencies.
  
  
  Document Type Issues: The document type used for the transaction may not be configured to handle withholding tax correctly.
  
  
  Solutions to Resolve Error FZ550
  
  
  Check Vendor Master Data:
  
  Go to the vendor master record and verify that the withholding tax information is correctly maintained. Ensure that the appropriate tax types and codes are assigned.
  
  
  
  Review Transaction Data:
  
  Check the specific transaction (invoice, payment request, etc.) for any inconsistencies in the withholding tax fields. Ensure that the tax codes and amounts are correctly entered.
  
  
  
  Validate Tax Codes:
  
  Ensure that the tax codes used in the transaction are valid and properly configured in the system. You can check this in the configuration settings for withholding tax.
  
  
  
  Update Configuration:
  
  If there have been changes in tax regulations, ensure that the SAP system is updated with the latest tax codes and configurations.
  
  
  
  Consult with Finance Team:
  
  Collaborate with your finance or tax department to ensure that all withholding tax requirements are being met and that the system reflects the current regulations.
  
  
  
  Use Transaction Codes:
  
  Use transaction codes like OB40 (for maintaining tax codes) and FK02 (to change vendor master data) to make necessary adjustments.
  
  
  
  Check Document Type Settings:
  
  Ensure that the document type used for the transaction is set up to handle withholding tax correctly. This can be checked in the configuration settings.
  
  
  
  Related Information
  
  
  SAP Notes: Check SAP Notes for any known issues or patches related to withholding tax processing. SAP Notes can provide specific guidance or fixes for known problems.
  
  
  Documentation: Review SAP documentation related to withholding tax configuration and processing to ensure compliance with local regulations.
  
  
  Testing: After making changes, conduct tests to ensure that the error is resolved and that payments can be processed without issues.
  
  
  By following these steps, you should be able to identify and resolve the cause of the FZ550 error in SAP. If the issue persists, consider reaching out to SAP support for further assistance.