Check Indicators 

The system checks tax amounts that are entered manually. In doing this, it determines the tax amount by means of the tax code. For each tax code, you determine whether the system outputs an error message or a warning message for amounts that are entered incorrectly. You make this specification by means of the check indicator.

The check indicator determines that if the tax amount is not correct, the error must be corrected. This means that you can prevent users from posting incorrect amounts of output tax. If you do not set a check indicator, the system issues a warning in the case of a different tax amount; a correction does not have to be made. This is necessary for input tax postings, since the tax amount on the incoming invoice is the amount users must enter when posting the invoice.

The system always issues a warning message or error message if the difference (in the smallest currency unit) between the tax amount you enter and the tax amount determined by the system is greater than the number of G/L account and asset items. You can increase this value, if necessary, by changing the rounding rules in the activity for defining currencies in the Implementation Guide (IMG) for Financial Accounting. For example, in Switzerland, 5 centimes is the smallest currency unit (5-centime rounding). See also Configuring the System Using the Implementation Guide.

During document entry, eight G/L account and asset line items were created with the same tax code. The system would issue an error message if the difference amounted to 0.09 USD.