How To Fix HRPAYDEST858 - You can't select a special DTC rule and an exemption reason

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYDEST - Message Class: Taxes Germany

• Message number: 858

• Message text: You can't select a special DTC rule and an exemption reason

What causes this issue?

As of 01/01/2016 the selection of special rule DTC delimts income tax
deductions for pension payments to beneficiaries with limited tax
liability. This means that the selection of an exemption reason is not
permitted.

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?

Delete the entry in the 'Exemption Reason' field.

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 HRPAYDEST858 - You can't select a special DTC rule and an exemption reason ?

  The SAP error message HRPAYDEST858 indicates that there is a conflict in the selection of a special DTC (Double Taxation Convention) rule and an exemption reason in the payroll processing. This error typically arises when the system detects that both a special DTC rule and an exemption reason have been selected for the same employee or payroll scenario, which is not allowed.
  Cause:
  
  Conflicting Selections: The error occurs when both a special DTC rule and an exemption reason are applied simultaneously. These two options are mutually exclusive, meaning you cannot use both at the same time for the same payroll calculation.
  Configuration Issues: There may be issues in the configuration of the payroll settings or tax settings that allow for both selections to be made inadvertently.
  Data Entry Errors: Incorrect data entry during the payroll setup or processing can lead to this conflict.
  
  Solution:
  
  Review Selections: Check the payroll settings for the employee in question. Ensure that either a special DTC rule or an exemption reason is selected, but not both. You may need to consult with your payroll administrator or tax specialist to determine the correct selection based on the employee's tax situation.
  Adjust Configuration: If this error occurs frequently, it may be necessary to review and adjust the configuration settings in the SAP system to prevent both options from being selected at the same time.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling DTC rules and exemption reasons. This may provide insights into the correct setup and usage.
  Testing: After making adjustments, conduct tests to ensure that the error does not recur and that payroll calculations are processed correctly.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates to the payroll module that could resolve the issue.
  User Forums: Engage with SAP user forums or communities where similar issues may have been discussed. Other users may have encountered the same error and can provide insights or solutions.
  Training: Consider training for payroll administrators on the proper handling of DTC rules and exemption reasons to minimize the risk of this error occurring in the future.
  
  By addressing the conflicting selections and ensuring proper configuration, you should be able to resolve the HRPAYDEST858 error and continue with payroll processing.