How To Fix M8_2034 - Retention tax amount is higher than tax amount of original document

SAP Error Message - Details

• Message type: E = Error

• Message class: M8_2 - Logistics Invoice Verification

• Message number: 034

• Message text: Retention tax amount is higher than tax amount of original document

What causes this issue?

You want to enter a tax amount in the original document. The tax amount
that you have entered is lower than the tax amount for the retention
document.

System Response

The system cannot post the document.

How to fix this error?

Enter a higher tax amount in the original document.

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 M8_2034 - Retention tax amount is higher than tax amount of original document ?

  The SAP error message M8_2034, which states "Retention tax amount is higher than tax amount of original document," typically occurs in the context of tax calculations during invoice processing or when posting accounting documents. This error indicates that the retention tax amount being applied exceeds the total tax amount calculated on the original document.
  Cause:
  
  Incorrect Retention Tax Configuration: The retention tax rate may be set incorrectly in the system, leading to a higher calculated retention tax than the original tax amount.
  Data Entry Errors: Manual entry errors during invoice processing can lead to incorrect retention tax amounts being entered.
  Document Type Settings: The document type settings may not be configured correctly to handle retention tax appropriately.
  Tax Code Issues: The tax codes used in the original document may not align with the retention tax codes, leading to discrepancies.
  
  Solution:
  
  
  Review Retention Tax Configuration:
  
  Check the configuration of the retention tax in the SAP system. Ensure that the retention tax rate is set correctly and is appropriate for the type of transaction being processed.
  Navigate to the relevant configuration settings in the SAP system (usually found in the SPRO transaction under Financial Accounting > Tax on Sales/Purchases).
  
  
  
  Verify Document Entries:
  
  Review the original document to ensure that the tax amounts are entered correctly. Check for any discrepancies in the tax amounts.
  If the retention tax was entered manually, verify that it does not exceed the total tax amount of the original document.
  
  
  
  Check Document Type Settings:
  
  Ensure that the document type used for the transaction is configured to handle retention tax correctly. This may involve checking the settings in the document type configuration.
  
  
  
  Adjust Tax Codes:
  
  Ensure that the tax codes used in the original document and the retention tax are compatible. If necessary, adjust the tax codes to ensure they align correctly.
  
  
  
  Consult with Finance Team:
  
  If the issue persists, consult with your finance or accounting team to ensure that the retention tax process is being followed correctly and that all relevant configurations are in place.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on retention tax handling.
  Documentation: Review SAP documentation related to tax handling and retention tax processes for further insights.
  Testing: After making any changes, conduct tests to ensure that the error does not reoccur and that the retention tax calculations are functioning as expected.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.