How To Fix FZ827 - > SEPA: No offsetting of credit memos before due date (&1)

SAP Error Message - Details

• Message type: E = Error

• Message class: FZ - Payment Transactions

• Message number: 827

• Message text: > SEPA: No offsetting of credit memos before due date (&1)

What causes this issue?

With "Payment for Each Due Date", a payment group is broken down
according to due dates, while credit memos are offset, when necessary,
against invoices due earlier. This ensures that the distributed payments
in total match the original payment group.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

In some cases, the clearing of credits before the due date is not
desired.
Using message control, you can change this message to message type S.
Then the system does not offset credit memos before the due date, and
the items are treated as exceptions.
You need to keep in mind that this involves individual payment groups
that can consist of invoices and credit memos. If a payment group
contains an invoice in the amount of 100 and a credit memo in the amount
of 150, then the invoice is also treated as an exception.
This setting applies only for SEPA incoming payment methods that require
a mandate.
INCLUDE CUSTOMIZED_MESSAGE_INFO OBJECT DOKU ID TX

System Response

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FZ827 - > SEPA: No offsetting of credit memos before due date (&1) ?

  The SAP error message FZ827, which states "SEPA: No offsetting of credit memos before due date (&1)," typically occurs in the context of SEPA (Single Euro Payments Area) transactions when there is an attempt to offset a credit memo against an invoice before the due date of the invoice.
  Cause:
  
  Timing Issue: The error arises because the system is configured to prevent the offsetting of credit memos against invoices that are not yet due. This is a control mechanism to ensure that payments are processed correctly and that cash flow is managed appropriately.
  Configuration Settings: The settings in the SAP system regarding payment processing and credit memo handling may be configured to restrict such actions.
  Business Rules: The organization may have specific business rules that dictate that credit memos cannot be applied to invoices until they are due.
  
  Solution:
  
  Check Due Dates: Verify the due date of the invoice against which you are trying to offset the credit memo. If the invoice is not yet due, you will need to wait until it is due before performing the offset.
  Adjust Configuration: If the business process allows for it, consider adjusting the configuration settings in SAP to permit offsetting of credit memos before the due date. This would typically involve working with your SAP configuration team or a consultant.
  Manual Processing: If immediate offsetting is necessary, consider processing the credit memo and invoice separately until the due date is reached.
  Review Business Processes: Ensure that the business processes align with the system configuration. If the organization’s policy allows for earlier offsetting, it may be necessary to update the configuration accordingly.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates regarding this error message.
  Transaction Codes: Familiarize yourself with transaction codes related to payment processing, such as F110 (Automatic Payment Transactions) and FB60 (Enter Incoming Invoice), as they may be relevant to the issue.
  Documentation: Review SAP documentation regarding SEPA payments and credit memo processing to understand the underlying rules and configurations.
  
  If the issue persists after checking the above points, it may be beneficial to consult with your SAP support team or a professional with expertise in SAP financial processes.