How To Fix FZ551 - Item cannot be paid: Error in withholding tax calculation

SAP Error Message - Details

• Message type: E = Error

• Message class: FZ - Payment Transactions

• Message number: 551

• Message text: Item cannot be paid: Error in withholding tax calculation

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message FZ551 - Item cannot be paid: Error in withholding tax calculation ?

  The SAP error message FZ551, which states "Item cannot be paid: Error in withholding tax calculation," typically occurs during the payment processing when there is an issue with the withholding tax configuration or calculation for a specific item. Here are the potential causes, solutions, and related information for this error:
  Causes:
  
  Incorrect Withholding Tax Configuration: The withholding tax codes or rates may not be set up correctly in the system.
  Missing Withholding Tax Data: The vendor master record may not have the necessary withholding tax information maintained.
  Inconsistent Tax Jurisdictions: The tax jurisdiction for the vendor or the transaction may not match the withholding tax settings.
  Document Type Issues: The document type used for the transaction may not be configured to allow withholding tax.
  Payment Block: There may be a payment block set on the invoice or the vendor that prevents payment processing.
  Currency Issues: If the transaction currency does not match the currency settings for the withholding tax, it can lead to calculation errors.
  
  Solutions:
  
  
  Check Withholding Tax Configuration:
  
  Go to the configuration settings for withholding tax in SAP (Transaction code: OBWW).
  Ensure that the withholding tax codes and rates are correctly defined and active.
  
  
  
  Review Vendor Master Data:
  
  Check the vendor master record (Transaction code: XK03) to ensure that the withholding tax information is correctly maintained.
  Verify that the appropriate withholding tax types are assigned to the vendor.
  
  
  
  Validate Document Type Settings:
  
  Ensure that the document type used for the invoice allows for withholding tax processing.
  Check the configuration for the document type in the Financial Accounting settings.
  
  
  
  Check Payment Block Settings:
  
  Review the payment block settings on the invoice or vendor to ensure that there are no restrictions preventing payment.
  
  
  
  Recalculate Withholding Tax:
  
  If changes are made to the configuration or vendor data, try to recalculate the withholding tax for the invoice.
  You can do this by using the transaction code FB60 (for invoices) or F110 (for payment runs) and checking the withholding tax calculation.
  
  
  
  Consult SAP Notes:
  
  Check for any relevant SAP Notes that may address specific issues related to withholding tax calculations. You can search for notes in the SAP Support Portal.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  OBWW: Configuration for withholding tax.
  XK03: Display vendor master data.
  FB60: Enter incoming invoices.
  F110: Automatic payment transactions.
  
  
  
  Documentation: Refer to SAP Help documentation for detailed information on withholding tax configuration and processing.
  
  
  Testing: After making changes, perform a test payment run to ensure that the issue is resolved.
  
  
  If the problem persists after checking these areas, it may be necessary to involve your SAP support team or consult with an SAP expert for further investigation.