How To Fix RECD185 - When withholding tax is active, only revenue conditions are allowed

SAP Error Message - Details

• Message type: E = Error

• Message class: RECD -

• Message number: 185

• Message text: When withholding tax is active, only revenue conditions are allowed

What causes this issue?

You tried to set up a withholding tax term for an advance payment
condition that is not posted as revenue.

System Response

It is not possible to post withholding tax for advance payment
conditions that are posted using special G/L processes.

How to fix this error?

If you want to post withholding tax, you have to use a revenue
condition.

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 RECD185 - When withholding tax is active, only revenue conditions are allowed ?

  The SAP error message RECD185 indicates that there is an issue related to withholding tax configuration in the system. Specifically, it occurs when you attempt to use certain condition types that are not compatible with withholding tax processing. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Withholding Tax Configuration: The error typically arises when withholding tax is activated for a particular transaction, but the condition types being used are not classified as revenue conditions. In SAP, only revenue-related conditions can be processed when withholding tax is active.
  Condition Type Settings: The condition types in the pricing procedure may not be set up correctly to allow for withholding tax. Non-revenue condition types (like discounts or freight) may be causing the issue.
  Transaction Type: The transaction type being used may not be compatible with the withholding tax settings.
  
  Solution:
  
  
  Check Condition Types: Review the condition types in the pricing procedure. Ensure that only revenue-related condition types are included when withholding tax is active. You can do this by:
  
  Navigating to the pricing procedure configuration in SPRO.
  Checking the settings for each condition type to ensure they are marked as revenue-related.
  
  
  
  Adjust Pricing Procedure: If necessary, modify the pricing procedure to exclude non-revenue condition types when withholding tax is applicable. This may involve creating a new pricing procedure or adjusting the existing one.
  
  
  Review Transaction Settings: Ensure that the transaction type you are using is set up correctly for withholding tax. This may involve checking the configuration for the specific transaction (e.g., sales order, invoice) to ensure it aligns with the withholding tax requirements.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on configuring withholding tax and pricing procedures. This can provide insights into best practices and common pitfalls.
  
  
  Testing: After making changes, perform tests to ensure that the error no longer occurs and that withholding tax is calculated 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.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have implemented.
  Training and Documentation: Consider reviewing training materials or documentation related to SAP Financials and withholding tax to deepen your understanding of the configuration and its implications.
  
  By following these steps, you should be able to resolve the RECD185 error and ensure that your withholding tax settings are functioning correctly within your SAP system.