How To Fix M8160 - Account & can only be posted to with tax code &

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 160

• Message text: Account & can only be posted to with tax code &

What causes this issue?

You tried to post with tax code &V3& to account &V1&. This is not
allowed, as postings to account &V1& can only be made with tax code
&V2&.

System Response

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

How to fix this error?

Check if you can post with a different tax code or to a different
account.
It is possible that account &V1& has been wrongly created. In order to
be able to post to account &V1& with tax code &V3&, you have to change
account &V1&, by going to the screen <LS>Change G/L account: Account
Management Company Code</> and changing the entry in the field <LS>Tax
category</>.

<DS:TRAN.FS02>Proceed</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8160 - Account & can only be posted to with tax code & ?

  The SAP error message M8160 indicates that there is an issue with posting to a specific account due to tax code restrictions. This error typically arises when you attempt to post a transaction to an account that is not configured to accept the specified tax code.
  Cause:
  
  Account Configuration: The account you are trying to post to may not be set up to accept the tax code you are using. This can happen if the account is configured for a different type of tax treatment or if it is a non-taxable account.
  Tax Code Assignment: The tax code you are using may not be valid for the account in question. This can occur if the tax code is not assigned to the account in the configuration settings.
  Transaction Type: The type of transaction you are trying to post may not be compatible with the account and tax code combination.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account in question (using transaction code FS00) and check the account settings.
  Ensure that the account is configured to allow postings with the specified tax code.
  
  
  
  Review Tax Code:
  
  Verify the tax code you are using (using transaction code FTXP) and ensure it is correctly set up in the system.
  Check if the tax code is valid for the type of account you are trying to post to.
  
  
  
  Adjust Posting:
  
  If the account is not meant to accept the tax code, consider using a different account that is configured for the tax code you need.
  Alternatively, if the tax code is not necessary for the transaction, you may need to remove it or use a different tax code that is compatible with the account.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct configuration or the appropriate tax code to use, consult with your finance or accounting team for guidance.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  FS00: Display/Change G/L Account Master Data
  FTXP: Maintain Tax Codes
  
  
  Documentation: Refer to SAP documentation or your organization's internal guidelines for managing tax codes and account configurations.
  Support: If the issue persists after checking the configurations, consider reaching out to your SAP support team for further assistance.
  
  By following these steps, you should be able to resolve the M8160 error and successfully post your transaction.