How To Fix M8159 - Tax code & and account & not compatible

M8159 - Overview

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 159

• Message text: Tax code & and account & not compatible

What causes this issue?

The tax code &V1& und the tax category set for account &V2& are not
compatible; either the tax code is an input tax type and the tax
category output tax or vice versa.

How to fix this error?

Please check the tax code entered and possibly the G/L account.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

If both are correct, you have two options:
The G/L account &V2& has been set wrong.
Change the G/L account &V2& by going to the screen
<LS>Change G/L account: Account Management Posting</> and changing
the entry in the <LS>Tax category</> field.

<DS:TRAN.FS02>Proceed</>

The tax code &V1& has been wrongly defined.
Your system administrator must change the tax type in the
properties of the tax code &V1&.

<DS:TRAN.FTXP>Proceed</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8159 - Tax code & and account & not compatible ?

  The SAP error message M8159 indicates that there is a compatibility issue between the tax code and the account being used in a transaction. This error typically arises during the posting of a document in the Materials Management (MM) module, particularly when dealing with inventory or procurement transactions.
  
  Cause:
  
  
  Tax Code Configuration: The tax code being used may not be configured correctly for the specific account in the system. This can happen if the tax code is not allowed for the account type or if the account is not set up to handle transactions with that tax code.
  
  
  Account Type: The account type (e.g., expense, revenue, asset) may not be compatible with the tax code. For example, certain tax codes may only be applicable to specific types of accounts.
  
  
  Master Data Issues: The material master or vendor master data may have incorrect or missing tax information, leading to this error when trying to post