FF747 - The tax amount must not be greater than the tax base

[Former Member]

Dear SAP Experts,

Due to the legal tax structure as per law, my tax amount becomes greater than the tax base. In OBA5, in Area FF, I have changed the MSG FF747 into Warning Msg. When I tested this in FB60, again the same message appears that the tax amount must not be greater than the tax base. Am I missing something.

I have checked multiple forums but to no Avail.

Kindly help me in solving this problem.

Best Regards...

[Former Member]

Hi,

if the VAT, you can check the percentage in FTXP and you can go to OBYZ and check the base amount.

If withholding tax, you can go to SPRO withholding tax calculation and ensure the tax base amount.

Regards,

John

[Former Member]

Dear John,

The issue is not WHT. I am calculating tax manually and entering in the tax field in FB60/MIRO just below the amount field. I am not using the percentages entered in FTXP.

Example:

Custom Duty: 10,000 Dr

Taxes Recieveable: 12,000 Dr

Vendor: 22,000 Cr

This should have been my accounting entry but as you can see above, the tax amount is greater than the Tax Base which is Customer Duty (10,000). I have changed the error message in OBA5 to Warning Message.

I have also suggested to enter the tax entry for vendor Manually through F-02 but it will effect my standard Tax reporting.

I have suggested the entry should be broken up as follows:

1)

Custom Duty: 10,000 Dr

Vendor:10,000 Cr

2)

Tax Recieveable: 12,000 Dr

Vendor: 12,000 Cr

The above two entry will include a reference to the PO or some other reference to link them in the GL for reporting purpose.

Kindly Advice whether the above solution is correct or if any better solution is available, it will be appreciated. Do let me know if I am missing something!!

Best Regards...