3283170 - Error: 'Cannot post this document as tax amount in transaction currency ABC is 0'

During a Partial Down Payment Clearing, system displays the errors 'Update for tax register failed for' and 'Cannot post this document as tax amount in transaction currency ABC is 0.' (ABC refers to the currency of the payment).

SAP Business ByDesign

1. Go to the Receivables Work Center.
2. Go to the Customers > Customer Accounts View.
3. Search and select the respective Account ID.
4. Click View button.
5. Select Document ID to be cleared.
6. Click Clear Manually.
7. Select the Down Payment.
8. Adjust the Down Payment Applied Net Amount according to amount of the other document.
9. Set the Posting Date and Document Date.
10. Click Clear.
11. You see error message:
    'Update for tax register failed for'
    'Cannot post this document as tax amount in transaction currency ABC is 0.'

The error occurs due to the Tax Amount in Transaction currency is zero, but the Tax amount in Reporting currency is not zero.

For example,

Down Payment - AAAA is in currency EUR. 
Tax Reporting Currency is USD.
Tax Rate - 25%
Exchange Rate - 1 EUR = 4 USD [Note: This exchange rate is to display the below calculation. It is for reference purpose]

In the below table, you can find the Tax Amount in Transaction Currency is zero. However, the Reporting Currency is not zero because of rounding difference. Hence, the system will not allow clearing.

You must have to clear the exact Down Payment amount with the invoice to avoid this error message.

Note - This scenario is valid for Payables also.

2696553 - Error: 'Update for tax register failed for' while Clearing a Down Payment

Update for tax register failed for, Cannot post this document as tax amount in transaction currency ABC is zero, Receivables, Payables , KBA , SRD-FIN-ACR , Receivables , SRD-FIN-ACP , Payables , Known Error