How To Fix M8793 - Calculate Tax not allowed in combination with prepayment

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 793

• Message text: Calculate Tax not allowed in combination with prepayment

What causes this issue?

The <LS>Calculate Tax</> indicator must not be set if the system is to
generate a prepayment document when the invoice is created.
INCLUDE MM_IV_MELDUNGEN OBJECT DOKU ID TX

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?

Enter the tax amount manually in the <LS>Tax</> section.

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 M8793 - Calculate Tax not allowed in combination with prepayment ?

  The SAP error message M8793, "Calculate Tax not allowed in combination with prepayment," typically occurs in the context of materials management and financial transactions involving prepayments. This error indicates that the system is not configured to calculate tax on prepayment transactions, which can be due to specific settings in the configuration of the SAP system.
  Cause:
  
  
  Prepayment Configuration: The error often arises when a prepayment is being processed, and the system is set up in such a way that it does not allow tax calculations on prepayments. This is common in scenarios where tax is only calculated on the final invoice.
  
  
  Tax Configuration: The tax settings in the SAP system may not be configured to handle tax calculations for prepayments. This can include settings in the tax codes or the way the tax is applied in the purchasing or sales processes.
  
  
  Document Type Settings: The document type used for the prepayment may not be configured to allow tax calculations.
  
  
  Solution:
  
  
  Check Configuration: Review the configuration settings for tax calculation in the SAP system. This includes:
  
  Tax Codes: Ensure that the tax codes used for prepayments are set up correctly.
  Document Types: Check the settings for the document types related to prepayments to see if they allow tax calculations.
  
  
  
  Use of Tax on Final Invoice: If the business process dictates that tax should only be calculated on the final invoice, ensure that the prepayment process is aligned with this. In such cases, you may need to adjust the process to avoid calculating tax on prepayments.
  
  
  Consult SAP Documentation: Refer to SAP documentation or help resources for specific guidance on configuring tax calculations for prepayments. This may involve consulting with your SAP Basis or Finance team.
  
  
  Custom Development: If the standard configuration does not meet your business requirements, consider discussing with your SAP development team about potential custom solutions or enhancements.
  
  
  Testing: After making any changes, conduct thorough testing to ensure that the error is resolved and that tax calculations are functioning as expected in both prepayment and final invoice scenarios.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on tax calculation configurations.
  Transaction Codes: Familiarize yourself with transaction codes related to tax configuration (e.g., OB40 for tax codes, OBCO for document types).
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, providing insights or solutions from other users' experiences.
  
  By addressing the configuration and understanding the business process requirements, you can resolve the M8793 error effectively.