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

SAP Error Message - Details

• 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 a transaction.
  
  
  Tax Jurisdiction: The tax jurisdiction settings may not align with the tax code and account combination being used.
  
  
  Solution:
  
  
  Check Tax Code Configuration: Review the configuration of the tax code in the SAP system. Ensure that it is set up correctly for the account type you are trying to use. This can be done in the transaction code OB40 (for tax codes) or through the SPRO configuration menu.
  
  
  Review Account Settings: Check the account settings in the General Ledger (GL) to ensure that it is compatible with the tax code. You can do this by reviewing the account in transaction code FS00.
  
  
  Update Master Data: Ensure that the material master or vendor master data has the correct tax information. You can check this in transaction codes MM02 (for material master) or XK02 (for vendor master).
  
  
  Consult Tax Jurisdiction Settings: If applicable, review the tax jurisdiction settings to ensure they are correctly configured for the transaction being processed.
  
  
  Testing: After making the necessary changes, try to post the transaction again to see if the error persists.
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  OB40: Maintain Tax Codes
  FS00: G/L Account Master Data
  MM02: Change Material Master
  XK02: Change Vendor Master
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax codes and account compatibility.
  
  
  Documentation: Refer to SAP documentation or help guides for detailed information on tax code configuration and account settings.
  
  
  If the issue persists after checking these areas, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in the MM module for further assistance.