How To Fix M8561 - Material & was assigned various tax codes

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 561

• Message text: Material & was assigned various tax codes

What causes this issue?

In entering or processing an invoice, you assigned material &V1& more
than one tax code. This usually does not make sense.

How to fix this error?

Check the original invoice from the supplier.
If in the original invoice the material &V1& is subject to one tax code
only, the material was assigned several tax codes in the system by
mistake.
Check all the invoice items for material &V1& in the system and make any
necessary changes. Also check if a wrong tax code was suggested in the
purchase order. If it was, change the default logik.
If in the original invoice the material &V1& is subject to several tax
codes and this was a mistake on the part of the supplier, return the
invoice to the supplier with the correction.
If in the original invoice the material &V1& is subject to several tax
codes and this is correct, ignore this warning.
&HINTS&
You can switch off this message in Customizing for Invoice Verification.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8561 - Material & was assigned various tax codes ?

  The SAP error message M8561 indicates that a material has been assigned multiple tax codes, which can lead to confusion in tax calculations and reporting. This error typically arises in the context of materials that are subject to different tax treatments based on various criteria, such as location, type of sale, or customer.
  Cause:
  
  Multiple Tax Codes Assigned: The material in question has been assigned more than one tax code in the system, which is not allowed for a single material in a specific context (e.g., sales order, purchase order).
  Configuration Issues: There may be issues in the configuration of tax codes in the system, leading to incorrect assignments.
  Material Master Data: The material master data may have been incorrectly maintained, leading to conflicting tax code assignments.
  
  Solution:
  
  
  Review Material Master Data:
  
  Go to the material master record (transaction code MM03) and check the tax classification in the relevant views (e.g., Sales Org. Data, Purchasing Data).
  Ensure that only one tax code is assigned for the relevant tax category.
  
  
  
  Check Tax Code Configuration:
  
  Review the configuration of tax codes in the system (transaction code SPRO) to ensure that they are set up correctly and that there are no overlaps or conflicts.
  Ensure that the tax codes are correctly assigned to the relevant tax categories.
  
  
  
  Correct Assignments:
  
  If multiple tax codes are found, determine which tax code is appropriate for the material and remove the others.
  If necessary, consult with your finance or tax department to ensure compliance with tax regulations.
  
  
  
  Test Transactions:
  
  After making the necessary changes, test the relevant transactions (e.g., creating a sales order or purchase order) to ensure that the error does not reoccur.
  
  
  
  Documentation and Training:
  
  Document the changes made and provide training to relevant personnel to prevent similar issues in the future.
  
  
  
  Related Information:
  
  Tax Code Maintenance: Familiarize yourself with how tax codes are maintained in SAP, including the transaction codes used for creating and modifying tax codes (e.g., FTXP).
  Material Master Views: Understand the different views of the material master and how they relate to tax codes.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax code assignments and the M8561 error message.
  
  By following these steps, you should be able to resolve the M8561 error and ensure that your material is correctly configured for tax purposes.