How To Fix G01506 - Deferred tax item &1 has an unsuitable where-applied indicator

SAP Error Message - Details

• Message type: E = Error

• Message class: G01 - SAP Consolidation

• Message number: 506

• Message text: Deferred tax item &1 has an unsuitable where-applied indicator

What causes this issue?

You are using
<DS:GLOS.3526B792AFAB52B9E10000009B38F974>FS item</> &V1& in
<DS:GLOS.3526B795AFAB52B9E10000009B38F974>cons chart of accounts</>
&V2& for posting deferred taxes. This item has the wrong
<DS:GLOS.3526B797AFAB52B9E10000009B38F974>where-applied indicator
</>.

System Response

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

How to fix this error?

Check the items for deferred taxes defined in the maintenance of
selected items for the entry.
'Deferred taxes: Balance sheet item' must contain items with a
where-applied indicator of 'assets' or 'liability/equity'.
'Deferred taxes: Income statement item' must contain items with a
where-applied indicator of 'income statement item'.

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 G01506 - Deferred tax item &1 has an unsuitable where-applied indicator ?

  The SAP error message G01506, which states "Deferred tax item &1 has an unsuitable where-applied indicator," typically arises in the context of financial accounting and tax reporting within the SAP system. This error indicates that there is an issue with the configuration of a deferred tax item, specifically related to its "where-applied" indicator.
  Cause:
  
  Incorrect Configuration: The deferred tax item may not be configured correctly in the system. The "where-applied" indicator is used to determine how the deferred tax item is applied in financial transactions.
  Incompatibility: The deferred tax item may be incompatible with the transaction or accounting entry being processed. This could be due to the nature of the tax item or the specific accounting rules applied.
  Missing Master Data: There may be missing or incorrect master data related to the tax item, such as tax codes or account assignments.
  Transaction Type: The type of transaction being processed may not support the specific deferred tax item configuration.
  
  Solution:
  
  Check Configuration: Review the configuration of the deferred tax item in the SAP system. Ensure that the "where-applied" indicator is set correctly according to your organization's accounting policies.
  Review Master Data: Verify that all relevant master data (e.g., tax codes, accounts) is correctly set up and linked to the deferred tax item.
  Adjust Transaction: If the transaction type is incompatible with the deferred tax item, consider adjusting the transaction or using a different deferred tax item that is suitable for the transaction.
  Consult Documentation: Refer to SAP documentation or your organization's financial policies to ensure compliance with the required configurations.
  Testing: After making changes, perform testing to ensure that the error does not reoccur and that the deferred tax item is applied correctly in transactions.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring deferred tax items.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBY6 (for configuring tax settings) and OBC4 (for managing deferred tax items).
  User Roles: Ensure that users have the appropriate roles and permissions to make changes to tax configurations and master data.
  Consulting SAP Support: If the issue persists after troubleshooting, consider reaching out to SAP support for further assistance.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.