Downpayment request from sales order for US not being cleared by incoming payment

[ArnabK]

We have an issue with DP request for US where the tax calculation happens via taxjar integration and tax code config in SAP has 0%. The DP request created from sales order billing cannot be cleared with incoming payment with the following error message - Tax entry not possible in this item (Message no. FF724). However, the F2 invoice document can be cleared with incoming payment which means all our downpayments for US remains uncleared. This works fine for non-US company code where system is calculating the tax. 

However, if we try to create a manual FI DP request for US with some tax value and clear the same with incoming payment, this works fine. 

The issue happens only when we try to get it integrated with SD with FAZ doc type for DP req and it is not letting us go ahead in clearing the DP request with payment as in any normal std flow.

[DequanXu]

Hello,

The issue you are experiencing with clearing down payment requests (DP requests) in the U.S. seems to be related to the integration between the SD module and financial accounting, specifically with the tax calculation and configuration. Here are a few steps and suggestions to help resolve the issue:

1. **Review Tax Code Configuration**:
- It's important to verify that the tax code configured in SAP for the down payment request aligns with the requirements of U.S. taxation as processed by the external system (TaxJar).
- If the tax code in SAP is set to 0% (A0 as the example in your context), it's crucial that this aligns with TaxJar's output. Ensure there's no discrepancy between what's expected by SAP and what's provided by TaxJar.

2. **Integration with External Systems**:
- Check the integration settings between SAP and TaxJar. Ensure that tax amounts are being correctly passed back to SAP and that they comply with SAP's clearance requirements.
- Ensure that TaxJar is not overwriting tax settings established in SAP in a way that causes this issue.

3. **Document Types and Clearing Rules**:
- Verify the document type settings in SAP for the FAZ billing type for the down payment request. Ensure that all necessary fields, especially tax-related fields, are correctly configured for clearing.
- Confirm that the clearing rules applied in SAP allow for 0% tax on the DP request when clearing it with an incoming payment.

4. **Comparison with Non-US Transactions**:
- Evaluate any differences in configuration between U.S. and non-U.S. transactions, especially regarding tax treatment. This might provide insights into what's missing or misconfigured for U.S. transactions.

5. **Testing with Manual FI Document**:
- Since you noted that manually created FI DP requests with tax work fine, look for differences in creation and configuration between these manual FI documents and those generated through the SD module.
- Validate how both document types handle tax codes and their clearance process.

6. **Logs and Error Messages**:
- Examine detailed logs and the full error message for more context. "Tax entry not possible in this item (Message no. FF724)" suggests a discrepancy in tax data or fields required during clearing.

Best regards,

Dequan Xu