FF705 - The tax amount entered is incorrect; correct: & &

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 705

• Message text: The tax amount entered is incorrect; correct: & &

What causes this issue?

The system checks the tax amounts on line item level. However, the
amount entered differs from the amount calculated (using the percentage
rates defined in the tax code) by more than one currency unit.

System Response

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

How to fix this error?

If this message is a warning message, you can confirm that your entry
is correct by pressing "Continue".
If this message is an error message, you should correct the tax amount
(or the base amount).

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF705 - The tax amount entered is incorrect; correct: & & ?

  The SAP error message FF705 indicates that there is an issue with the tax amount entered in a financial transaction. This error typically occurs during the posting of documents in the Financial Accounting (FI) module, particularly when dealing with tax-related entries.
  Cause:
  The error message FF705 is triggered when the tax amount entered does not match the expected tax amount based on the tax calculation rules defined in the system. This can happen due to several reasons:
  
  Incorrect Tax Code: The tax code used may not be configured correctly, or it may not correspond to the correct tax rate for the transaction.
  Manual Entry Error: The user may have manually entered an incorrect tax amount that does not align with the calculated tax based on the transaction amount.
  Configuration Issues: There may be issues with the configuration of tax calculation in the system, such as incorrect tax rates or missing tax conditions.
  Currency Issues: If the transaction involves multiple currencies, there may be discrepancies in the conversion rates or the way taxes are calculated across different currencies.
  Document Type Restrictions: Certain document types may have specific tax requirements that are not being met.
  
  Solution:
  To resolve the FF705 error, you can take the following steps:
  
  Verify Tax Code: Check the tax code used in the transaction to ensure it is correct and configured properly in the system.
  Recalculate Tax Amount: If the tax amount was entered manually, recalculate it based on the transaction amount and the applicable tax rate. Ensure that the tax amount matches the expected value.
  Check Configuration: Review the tax configuration in the system (transaction codes such as OB40 for tax codes, OBYZ for tax determination) to ensure that the tax rates and conditions are set up correctly.
  Review Document Type: Ensure that the document type being used allows for the tax treatment you are trying to apply.
  Consult with Finance Team: If you are unsure about the correct tax amount or configuration, consult with your finance or accounting team for guidance.
  Test in a Sandbox: If changes are made to the configuration, test the transaction in a sandbox environment before applying it to the production system.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  OB40: Maintain Tax Codes
  OBYZ: Maintain Tax Determination
  FB01: Post Document
  
  
  SAP Notes: Check for any SAP Notes related to tax calculation issues or specific error messages that may provide additional insights or patches.
  Documentation: Review SAP documentation on tax calculation and configuration for your specific country or region, as tax regulations can vary significantly.
  
  By following these steps, you should be able to identify the cause of the FF705 error and implement the necessary corrections to resolve it.