SAP Knowledge Base Article - Public

3109103 - Error - External Reference <XYZ>: Error in tax recalculation due to <ABC> <DEF> discount. Use a Payment Difference Reason that is not relevant for tax adjustment. (KBA: 3109103)

Symptom

You get the error message "External Reference <XYZ>: Error in tax recalculation due to <ABC> <DEF> discount. Use a Payment Difference Reason that is not relevant for tax adjustment. (KBA: 3109103)" when trying to clear the Invoice and Payment manually.

Environment

 SAP Business ByDesign

Reproducing the Issue

  1. Go to Receivables work centre.
  2. Click on Customer Accounts view.
  3. Search for the Account and Click View. 
  4. Click on Clearing ID. 
  5. In the next screen You find the error message - "External Reference <XYZ>: Error in tax recalculation due to <ABC> <DEF> discount. Use a Payment Difference Reason that is not relevant for tax adjustment. (KBA: 3109103)", once you click on Clear. 

Cause

This occurs when the Transaction currency and the Tax Reporting Currency of the document are different. During clearing/payment, a negligible discount is applied, and the adjustment is relevant for tax recalculation.

Example:

Customer Invoice created with Transaction Currency in EUR and Tax Reporting Currency in DKK .

Exchange Rate Applied = 7.44

Base Amount Tax(%) Tax Amount Gross Amount
Transaction Currency (EUR) 213 25 53.25 266.25
Reporting Currency (DKK) 1584.72 25 396.18 1980.9

During clearing/payment, when a negligible discount is applied, for example 0.01 EUR, the Tax Lines in Transaction Currency are adjusted as follows:

Transaction Currency (EUR)
Base Amount Tax(%) Tax Amount

Gross Amount

213 25 53.25 266.25
212.992 25 53.248 266.24
0.002

The Tax Amount is then rounded off to two digits = 0.002 rounded to 0.00. Hence in the Transaction Currency, the Tax Amount = 0.00

Further, in the Reporting Currency the discount applied would be 0.01 * 7.44 = 0.0744
The Tax Lines adjusted in Reporting Currency would be:

Reporting Currency (DKK)
Base Amount Tax(%) Tax Amount Gross Amount
1584.72 25 396.18 1980.9
1584.66048 25 396.16512 1980.8256
0.01488

The Tax Amount is then rounded off to two digits = 0.01488 rounded to 0.01. Hence in the Reporting Currency the Tax Amount = 0.01

Resolution

You have to post the discount against a Payment Difference Reason that is not tax adjustment relevant.

Keywords

Clearing, Cash Discount, Tax Deduction Correction, Tax Amount, Transaction Currency, Zero, 0 , KBA , it is not possible to post the cash disc , the cash discount as tax deduction corre , tax amount in transaction currency is 0 , error while clearing , error while approving clearing task , AP-DUE-PTD , Product Tax Declaration , Known Error

Product

SAP Business ByDesign all versions