How To Fix WS504 - In company code &1, the cash discount amount contains tax

WS504 - Overview

• Message type: E = Error

• Message class: WS - Supplier Billing Document

• Message number: 504

• Message text: In company code &1, the cash discount amount contains tax

What causes this issue?

In company code &v1&, the cash discount is calculated on the gross
amount. This distorts the results of profit simulation.

System Response

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

Cash discount conditions are not taken into account in profit
simulation if you remove the "Calculate cash discount" indicator in
Customizing for the profit group.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message WS504 - In company code &1, the cash discount amount contains tax ?

  SAP Error Message:
  WS504 - "In company code &1, the cash discount amount contains tax"
  
  
  Cause:
  This error occurs during invoice verification or posting when the system detects that the cash discount amount entered includes tax. According to SAP's standard logic, the cash discount amount should be net of tax. The system expects the cash discount to be calculated on the net amount (amount before tax), not on the gross amount (amount including tax).
  In other words, the cash discount amount you entered or calculated contains tax, which is not allowed because the cash discount is supposed to reduce the taxable base, not the tax itself.
  
  When does it occur?
  
  During invoice verification (transaction MIRO) or vendor invoice posting.
  When the cash discount amount is manually entered or automatically calculated incorrectly.
  When tax configuration or calculation procedure causes the cash discount to be considered as including tax.
  
  
  
  Solution:
  
  
  Check the Cash Discount Amount:
  
  Ensure that the cash discount amount entered or