How To Fix M8889 - Account & has been set as not relevant for tax

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 889

• Message text: Account & has been set as not relevant for tax

What causes this issue?

In the purchase order, or when entering an invoice, you have entered a
G/L account that has been set up in Customizing as not relevant for
taxes. When you enter an invoice with reference to a purchase order,
you are not permitted to use this type of G/L account, since all
invoice items require a tax code.

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 your settings in the tax category for the relevant G/L account.

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 M8889 - Account & has been set as not relevant for tax ?

  The SAP error message M8889 indicates that a specific account has been marked as "not relevant for tax" in the system. This typically occurs in the context of materials management and financial accounting when trying to post a transaction that involves tax calculations.
  Cause:
  
  Account Configuration: The account in question has been configured in the system to be excluded from tax calculations. This could be due to the account type or the settings in the chart of accounts.
  Tax Code Assignment: The tax code being used in the transaction may not be applicable to the account, leading to the error.
  Transaction Type: The type of transaction being processed may not be compatible with tax calculations for that account.
  
  Solution:
  
  
  Check Account Settings:
  
  Go to the account configuration in the SAP system (Transaction Code: FS00).
  Verify if the account is set as "not relevant for tax." If it should be relevant, change the settings accordingly.
  
  
  
  Review Tax Code:
  
  Ensure that the tax code being used in the transaction is appropriate for the account. You can check this in the tax code configuration (Transaction Code: FTXP).
  If necessary, assign a different tax code that is relevant for the account.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about changing account settings or tax codes, consult with your finance or accounting team to ensure compliance with tax regulations.
  
  
  
  Transaction Type Review:
  
  Check if the transaction type being processed is appropriate for the account. Some accounts may not allow certain types of transactions that involve tax.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error does not reoccur.
  
  
  
  Related Information:
  
  Documentation: Refer to SAP documentation for detailed information on account settings and tax relevance.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  User Roles: Ensure that you have the necessary permissions to make changes to account settings or tax codes.
  
  By following these steps, you should be able to resolve the M8889 error and ensure that the account is correctly configured for tax relevance.