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

M8889 - Overview

• 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.

M8889 - Details

• 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