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ERROR: 'Lump sum processed without a valid directive number'

Created on  | Last modified on 

Summary

How to solve the validation error 'Lump sum processed without a valid directive number. The error appears when running the IRP5/IT3a report on Sage VIP Classic or Sage VIP Premier.

Description

Any lump sum payment needs a tax directive from the South African Revenue Service (SARS) to advise you what tax to deduct from an employee. We include this information in your tax certificate submission.

The error comes up when you run the IRP5/IT3's report (test run, live run or validation run).

Cause

You processed an amount against a lump sum source code and didn't capture tax directive on the Employee Information Screen.

Resolution

NOTE:

For any lump sum or gratuity payment, you'll need to apply for a tax directive with the South African Revenue Authority (SARS). This instructs you which source code to use, and the amount of tax to deduct.

  1. From the Main Menu, go to Employee, then select Change Employee
  2. Select the Employee Code as per the error report
  3. Click the Statutory Details tab
  4. Click Details of Directives
  5. Enter the details as per the SARS tax directive:
    • Directive number
    • Date issued
    • Source code
    • Amount

TIP:

You can add up to five directives on a tax record. Create an additional employee records if you need to add more.

 

  1. Run the IRP5/IT3's report again after you updated the directive details.

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