FF707 - Tax entered incorrect (code &1, amount &2), correct &3 &4

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 707

• Message text: Tax entered incorrect (code &1, amount &2), correct &3 &4

What causes this issue?

The system checks the tax amounts for each code on document level.
However, the amounts entered deviate more from the amount calculated
(using the percentage rates defined in the tax code) than is allowed
considering rounding errors.

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 amounts
or the base amounts, depending on how your tax code is defined.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF707 - Tax entered incorrect (code &1, amount &2), correct &3 &4 ?

  The SAP error message FF707 indicates that there is an issue with the tax information entered in a financial transaction. Specifically, it suggests that the tax code and amount entered do not match the expected values based on the configuration in the system.
  Cause:
  
  Incorrect Tax Code: The tax code entered may not be valid for the transaction or may not be configured correctly in the system.
  Mismatched Tax Amount: The amount of tax entered does not correspond to the tax code or the base amount of the transaction.
  Configuration Issues: There may be issues with the tax configuration in the system, such as missing tax rates or incorrect settings in the tax calculation procedure.
  Currency Issues: If the transaction involves multiple currencies, there may be discrepancies in how the tax is calculated or reported.
  
  Solution:
  
  Verify Tax Code: Check the tax code entered in the transaction. Ensure that it is valid and appropriate for the type of transaction being processed.
  Check Tax Amount: Review the tax amount entered. It should be calculated based on the applicable tax rate for the given tax code and the base amount of the transaction.
  Review Configuration: If the tax code and amount appear correct, review the tax configuration in the SAP system. This includes checking the tax rates, tax calculation procedures, and any relevant settings in the financial accounting module.
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team to ensure that the tax settings are correctly configured for your specific business requirements.
  Test Transactions: If changes are made to the configuration, test the transaction again to ensure that the error does not reoccur.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like OB40 (for maintaining tax codes) or OBYZ (for tax determination) to check or modify tax settings.
  SAP Notes: Check for any relevant SAP Notes that may address known issues or provide guidance on tax configuration.
  User Roles: Ensure that the user entering the transaction has the appropriate permissions to access and modify tax-related settings.
  
  If the issue persists after following these steps, it may be necessary to engage with your SAP support team or a consultant who specializes in SAP Financials for further assistance.