How To Fix ICL_CF533 - Only apply withholding tax with tax reportable items

SAP Error Message - Details

• Message type: E = Error

• Message class: ICL_CF - Insurance Solution Claims Settlement/Payment Financial Part

• Message number: 533

• Message text: Only apply withholding tax with tax reportable items

What causes this issue?

You have manually entered a withholding code value for the payment
item. However, the payment is not considered to be a tax reportable
item.

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?

You can change the payment by:
Removing the withholding code value you entered
Defining valid tax roles and payment types for the item to be
considered as a tax reportable item
Define the tax roles for the business partners. Use the F4 input help
for the tax role combinations.
Define the payment type for each payment line 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 ICL_CF533 - Only apply withholding tax with tax reportable items ?

  The SAP error message ICL_CF533, which states "Only apply withholding tax with tax reportable items," typically occurs in the context of withholding tax processing in SAP. This error indicates that the system is trying to apply withholding tax to an item that is not marked as reportable for tax purposes.
  Cause:
  
  Non-Reportable Items: The item in question is not classified as reportable for withholding tax. This could be due to incorrect configuration or missing settings in the master data.
  Incorrect Tax Code: The tax code assigned to the transaction may not be set up to allow withholding tax.
  Document Type: The document type being used may not support withholding tax.
  Configuration Issues: There may be issues in the configuration of withholding tax settings in the SAP system.
  
  Solution:
  
  Check Item Classification: Ensure that the item you are trying to apply withholding tax to is classified as reportable. This can be done by checking the relevant master data (e.g., vendor master data).
  Review Tax Codes: Verify that the tax code used in the transaction is configured to allow withholding tax. You can do this by checking the tax code settings in the SAP configuration.
  Document Type Settings: Ensure that the document type you are using supports withholding tax. You may need to adjust the settings in the configuration if it does not.
  Update Master Data: If the item is indeed reportable but is not marked as such, you may need to update the master data to reflect the correct classification.
  Consult Configuration: If you have access to the SAP configuration, check the settings for withholding tax in the Financial Accounting (FI) module to ensure everything is set up correctly.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on withholding tax configuration.
  Documentation: Review SAP documentation related to withholding tax processing to ensure compliance with local tax regulations and proper configuration.
  Testing: After making changes, perform testing in a development or quality assurance environment to ensure that the issue is resolved before applying changes in the production environment.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP Financials for further assistance.