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

G01506 - Overview

• 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