How To Fix RETMFI068 - For vendor &1 there is an exemption for key date &2

SAP Error Message - Details

• Message type: E = Error

• Message class: RETMFI - Messages for Posting Terms

• Message number: 068

• Message text: For vendor &1 there is an exemption for key date &2

What causes this issue?

The master record of vendor &V1& contains an exemption from withholding
tax for &V2&.

System Response

The posting cannot be made.

How to fix this error?

Check if the withholding tax term in the contract is supposed to contain
this withholding tax type.

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

Procedure for System Administrators

INCLUDE RECA_CUSTOMIZED_MESSAGE_INFO OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RETMFI068 - For vendor &1 there is an exemption for key date &2 ?

  The SAP error message RETMFI068 indicates that there is a tax exemption for a vendor on a specific key date. This message typically arises in the context of tax calculations, particularly when dealing with withholding tax or similar tax-related processes in SAP.
  Cause:
  The error occurs when the system detects that a vendor has a tax exemption that is valid for the specified key date. This means that the system is trying to apply tax calculations to a vendor who is exempt from certain taxes as of that date. The key date is usually the date of the transaction or the date when the tax calculation is being performed.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Vendor Master Data:
  
  Go to the vendor master data (transaction code XK03 or MK03).
  Verify the tax information for the vendor in question. Check if there is a valid tax exemption record for the key date mentioned in the error message.
  
  
  
  Review Tax Exemption Records:
  
  Ensure that the tax exemption is correctly set up in the system. This includes checking the validity period of the exemption and ensuring that it covers the key date in question.
  
  
  
  Adjust Transaction Date:
  
  If the transaction date is not aligned with the exemption period, consider adjusting the transaction date to fall within the exemption period.
  
  
  
  Consult Tax Regulations:
  
  Ensure that the tax exemption is compliant with local tax regulations. If the exemption is no longer valid, you may need to update the vendor's tax status accordingly.
  
  
  
  Contact Your Tax Department:
  
  If you are unsure about the validity of the exemption or how to proceed, consult your finance or tax department for guidance.
  
  
  
  System Configuration:
  
  If necessary, check the configuration settings related to tax exemptions in your SAP system. This may involve working with your SAP Basis or configuration team.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  XK03 - Display Vendor
  MK03 - Display Vendor (Purchasing)
  FB60 - Enter Incoming Invoice
  FB70 - Enter Outgoing Invoice
  
  
  
  SAP Notes: 
  
  Check for any relevant SAP Notes that may address specific issues related to tax exemptions and the RETMFI068 error.
  
  
  
  Documentation: 
  
  Review SAP documentation related to tax management and vendor master data for more detailed information on handling tax exemptions.
  
  
  
  By following these steps, you should be able to identify the cause of the RETMFI068 error and take appropriate action to resolve it.