Budget exceed error because of tax code in ME21N

[Former Member]

Hi Guys,

I get budget exceed error msg in ME21N. This is happening because of tax code. Ideally Tax value is not considered while calculating budget. When I choose deductible tax code no error appears. When I choose non-deductible tax code , I get budget exceed error by the value of tax amount.

Please help.

Regards

SK

[BijayKumarBarik]

Hi,

Your system restricting PO creation as Budget value exceeding where you have message number 629 as error in Application Area BP with t.codes: OBMSG and OBA5.

Deductible tax code,no error appear as the value available in tax condition type need to post to separate G/L account where as for non-deductible tax code, system showing error message as value available in tax condition type needs to add to material account/ Cons. account in PO.

Reduce total PO value,then crate your PO with tax code or check with FICO team for exceeding Budget Value

Regards,

Biju K

[Former Member]

Hi Mr. Barik,

I tried doing that. Even if I create  PO with 100 inr and tax value of 2.00 inr , I get the budget exceed value of 2.00 inr.

[JL23]

post the exact error message

[Former Member]

Exact message :

Item 001 WBS element XXX budget exceeded

Message no. BP603.

Regards,

SK singh

[BijayKumarBarik]

Hi,

Message numbers set as error in Application Area BP with t.codes: OBMSG and OBA5

603-Item & budget exceeded

629-Item & payment budget exceeded

So you are getting error message. Talk to FICO & Business team about budget.

Regards,

Biju K

[former_member183424]

Are you using condition type for tax.

If yes then it would be a accrual key.

Otherwise it will calculate the budget.

Use the Condition type with accrual key.

Then it will not effect the budget.

You are using tax code, it will calculate including budge.

You can increase the budget amount as per you tax amount.

[sudeep_a]

Hi,

This is standard system behavior. Non-deductuble tax is nothing bus your expense and it will be loaded to inventory account. so system will consider this for budget check. You may increase your budget amount to 2% or 5% considering this expense.

Regards,

Sudeep.

[Former Member]

Hi Sudeep,

  Thanks for your reply.

As you said this is the standard behavior, My PR value is 100,000 INR and PO value is 65,000 + 3500 (non deductible tax). Budget exceed error is for amount 3500. How can this happen , when my PR has a value of 100,000 inr..

Regards,

SK singh

[former_member183424]

Can you analysis your budget value?

refer to thread

Item XXX WBS Element XX-XXX-XXX Budget Exceeded | SCN