How To Fix M8565 - Tax amount & is larger than gross invoice amount &

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 565

• Message text: Tax amount & is larger than gross invoice amount &

What causes this issue?

The tax amount &V1& is larger than the gross amount invoiced &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?

You can correct this as follows:
Have the system calculate the tax automatically and correct the item
values from which the tax amount was calculated.
Enter the tax amount manually.
Correct the gross amount of the invoice, if required.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8565 - Tax amount & is larger than gross invoice amount & ?

  The SAP error message M8565, which states "Tax amount & is larger than gross invoice amount &," typically occurs during the invoice verification process in SAP. This error indicates that the tax amount calculated for the invoice exceeds the total gross amount of the invoice itself, which is not permissible.
  Causes:
  
  Incorrect Tax Calculation: The tax amount may have been incorrectly calculated due to wrong tax rates or incorrect configuration in the tax settings.
  Data Entry Errors: Manual entry errors in the invoice, such as entering an incorrect gross amount or tax amount.
  Invoice Type: The type of invoice being processed may not support the tax configuration being used.
  Currency Issues: If there are currency conversions involved, discrepancies may arise due to exchange rate differences.
  Master Data Issues: Incorrect vendor or material master data that affects tax calculations.
  
  Solutions:
  
  Verify Invoice Data: Check the invoice details to ensure that the gross amount and tax amount are entered correctly. Make sure that the gross amount is greater than the tax amount.
  Check Tax Configuration: Review the tax configuration in the system (transaction codes like OB40 for tax codes) to ensure that the correct tax rates are applied.
  Review Master Data: Ensure that the vendor and material master data are correctly set up, particularly the tax classification and tax codes.
  Adjust Invoice Amounts: If the tax amount is indeed correct but the gross amount is incorrect, adjust the gross amount accordingly.
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team for specific configurations related to tax calculations.
  Test with Different Scenarios: If possible, create a test invoice with different amounts to see if the error persists, which can help isolate the issue.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as MIRO (Invoice Verification) and FB60 (Vendor Invoice) to troubleshoot the issue.
  SAP Notes: Check for any SAP Notes related to this error message, as they may provide additional insights or patches.
  User Exits and BAdIs: If custom logic is applied in your SAP system, review any user exits or BAdIs that might affect tax calculations.
  
  If the issue persists after checking these areas, it may be beneficial to engage with your SAP support team or a consultant who specializes in SAP FI (Financial Accounting) or MM (Materials Management) modules for further assistance.