How To Fix M8704 - Tax code & invalid (Tax schema &)

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 704

• Message text: Tax code & invalid (Tax schema &)

What causes this issue?

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

System Response

The tax code you entered is not defined.

How to fix this error?

Correct your entry in the "Tax Code" field.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8704 - Tax code & invalid (Tax schema &) ?

  The SAP error message M8704 indicates that there is an issue with the tax code being used in a transaction. Specifically, it states that the tax code is invalid for the tax schema being referenced. This error typically arises in the context of materials management, particularly during the posting of goods movements or invoice verification.
  
  Cause:
  
  Invalid Tax Code: The tax code entered does not exist in the system or is not valid for the specific tax schema being used.
  
  Configuration Issues: The tax code may not be properly configured in the system, or it may not be assigned to the relevant tax schema.
  Master Data Issues: The material master or vendor master data may not have the correct tax information set up.
  Country-Specific Settings: The tax code may not be applicable for the country or region specified in the transaction.
  
  
  Solution:
  
  Check Tax Code: Verify that the tax code entered is correct and exists in the