How To Fix IBRO527 - No withholding tax can be retained for item &1 in document &2

SAP Error Message - Details

• Message type: E = Error

• Message class: IBRO - Broker Collections Message Class

• Message number: 527

• Message text: No withholding tax can be retained for item &1 in document &2

What causes this issue?

The BAPI was called with specifications for item &V1& in document &V2&,
for which withholding tax is to be retained. This is not permitted for
the item.

System Response

Processing was cancelled.

How to fix this error?

Check the specifications for withholding tax. The <ZK>Withholding tax
retained</> flag can only be set for open items for which the
withholding tax type <ZK>We retain withholding tax</> is defined.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message IBRO527 - No withholding tax can be retained for item &1 in document &2 ?

  The SAP error message IBRO527 indicates that there is an issue with withholding tax processing for a specific item in a financial document. This error typically arises when the system cannot determine the appropriate withholding tax to apply to a particular line item in a document, such as an invoice or payment.
  Cause:
  The error can occur due to several reasons, including:
  
  Missing Withholding Tax Configuration: The withholding tax type may not be properly configured in the system for the vendor or the specific transaction type.
  Incorrect Vendor Master Data: The vendor master record may not have the necessary withholding tax information maintained, such as the withholding tax type or exemption status.
  Document Type Issues: The document type used may not be set up to allow withholding tax processing.
  Tax Code Issues: The tax code used in the document may not be linked to any withholding tax type.
  Item Category: The item category in the document may not be relevant for withholding tax.
  Country-Specific Regulations: There may be country-specific regulations that affect the withholding tax applicability.
  
  Solution:
  To resolve the IBRO527 error, you can take the following steps:
  
  
  Check Vendor Master Data:
  
  Go to the vendor master record and ensure that the withholding tax type is correctly maintained.
  Verify that the vendor is assigned the correct withholding tax codes.
  
  
  
  Review Document Configuration:
  
  Check the document type settings in the configuration to ensure that withholding tax is allowed for that document type.
  Ensure that the item category used in the document supports withholding tax.
  
  
  
  Verify Tax Code:
  
  Ensure that the tax code used in the document is linked to the appropriate withholding tax type in the system.
  
  
  
  Check Withholding Tax Configuration:
  
  Review the configuration settings for withholding tax in the SAP system (transaction code OBWW) to ensure that the withholding tax types are correctly defined and assigned.
  
  
  
  Consult with Tax Experts:
  
  If the issue persists, consult with your finance or tax department to ensure compliance with local tax regulations and to verify that all necessary configurations are in place.
  
  
  
  Test with Different Scenarios:
  
  If possible, create a test document with different vendors or items to see if the issue is isolated to specific cases.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  OBWW (Withholding Tax Configuration)
  XK03 (Display Vendor)
  FB60 (Enter Incoming Invoice)
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to withholding tax processing.
  
  
  Documentation: Review SAP documentation on withholding tax to understand the configuration and processing requirements.
  
  
  By following these steps, you should be able to identify the root cause of the IBRO527 error and implement the necessary changes to resolve it.