How To Fix >0538 - General ledger account &1 &2 is not allowed to have tax category &3

SAP Error Message - Details

• Message type: E = Error

• Message class: >0 - General Basis texts

• Message number: 538

• Message text: General ledger account &1 &2 is not allowed to have tax category &3

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

What else can you do?

First, use our AnswerBot below to get a possible cause and solution (requires a premium subscription).

Also, review the in-depth Common Questions & Answers listed below; you could discover a solution there or be able to connect with others who have faced similar challenges.

You can also try searching the SAP support portal (support.sap.com) but you need a special user ID to access it. It is possible that an SAP support note exists that provides additional details about the mistake or even steps for fixing it.

Smart SAP Assistant

• What is the cause and solution for SAP error message >0538 - General ledger account &1 &2 is not allowed to have tax category &3 ?

  The SAP error message 0538 indicates that a specific general ledger (G/L) account is not allowed to have a certain tax category assigned to it. This error typically arises during transactions that involve tax calculations, such as posting invoices or payments.
  Cause:
  The error can occur due to several reasons:
  
  Configuration Issues: The G/L account may not be configured to allow the specified tax category in the system settings.
  Account Type Restrictions: Certain G/L accounts (like expense or income accounts) may have restrictions on the types of tax categories they can use.
  Tax Category Assignment: The tax category being used may not be valid for the specific G/L account based on the configuration in the tax settings.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check G/L Account Configuration:
  
  Go to the G/L account master data (transaction code FS00).
  Verify the settings for the G/L account in question, particularly the tax category settings.
  Ensure that the account is configured to allow the specified tax category.
  
  
  
  Review Tax Category Settings:
  
  Check the tax category configuration in the system (transaction code OBYZ or OB40).
  Ensure that the tax category you are trying to use is valid for the type of G/L account you are working with.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct tax category or G/L account settings, consult with your finance or accounting team to ensure compliance with accounting standards and tax regulations.
  
  
  
  Adjust Posting:
  
  If the G/L account is not meant to have the specified tax category, consider using a different G/L account that is configured correctly for the transaction you are trying to post.
  
  
  
  Testing:
  
  After making any changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  FS00: G/L Account Master Data
  OBYZ: Tax Category Configuration
  OB40: Tax Code Configuration
  
  
  Documentation: Refer to SAP Help documentation for detailed information on G/L account settings and tax category configurations.
  User Roles: Ensure that you have the necessary permissions to make changes to G/L account settings and tax configurations.
  
  By following these steps, you should be able to identify the cause of the error and implement the necessary changes to resolve it.