How To Fix MN235 - Tax classification for material &, country &, has not been maintained

SAP Error Message - Details

• Message type: E = Error

• Message class: MN - Message class for subsequent settlement (Purchasing)

• Message number: 235

• Message text: Tax classification for material &, country &, has not been maintained

What causes this issue?

In order to create the settlement documents (billing documents), the
system needs the tax classification of material &V1& for country &V2&.
This data has not been maintained in the system.

System Response

Settlement accounting cannot be carried out for the rebate arrangement
in question.

How to fix this error?

Please maintain the tax classification for material &V1&, country &V2&,
for sales organization &V3&, distribution channel &V4&. Carry out
settlement accounting for this rebate arrangement again.

If you have the appropriate authorization, you can maintain the data
directly (material &V1&). As a rule, you will find the field in the
section "Control data" of the view "Sales and Distribution - Sales
Organization Data". The sales organization is &V3&, the distribution
channel &V4&.
<DS:TRAN.MM02>Perform function</>
ENDIF

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN235 - Tax classification for material &, country &, has not been maintained ?

  The SAP error message MN235 indicates that there is a missing tax classification for a specific material in a specific country. This error typically arises when you are trying to perform transactions that involve tax calculations, such as sales orders, purchase orders, or invoicing, and the system cannot find the necessary tax classification for the material in the specified country.
  Cause:
  
  Missing Tax Classification: The primary cause of this error is that the tax classification for the material in the specified country has not been maintained in the system.
  Incorrect Material Master Data: The material master data may not have been properly set up, or the tax classification field may have been left blank.
  Country-Specific Settings: The tax classification may not be defined for the specific country in the tax configuration settings.
  
  Solution:
  To resolve the MN235 error, follow these steps:
  
  
  Check Material Master Data:
  
  Go to the material master record (transaction code MM03).
  Check the "Sales Organization Data" and "Plant Data" views for the material in question.
  Ensure that the tax classification field is filled in correctly.
  
  
  
  Maintain Tax Classification:
  
  If the tax classification is missing, you need to maintain it. You can do this by using transaction code MM02 to edit the material master.
  Navigate to the relevant views and enter the appropriate tax classification for the material.
  
  
  
  Check Tax Configuration:
  
  Go to the tax configuration settings (transaction code OB40 for tax codes or OBYZ for tax determination).
  Ensure that the tax classification for the material is defined for the specific country in the tax settings.
  
  
  
  Consult with Tax Experts:
  
  If you are unsure about the correct tax classification to use, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error has been resolved.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  MM03: Display Material Master
  MM02: Change Material Master
  OB40: Maintain Tax Codes
  OBYZ: Maintain Tax Determination
  
  
  
  Tax Classification: This is typically a field in the material master that indicates how the material is taxed in different jurisdictions. It is crucial for ensuring that the correct tax rates are applied during sales and purchasing processes.
  
  
  Documentation: Refer to SAP documentation or your organization's SAP support team for specific guidelines on maintaining tax classifications and understanding tax configurations.
  
  
  By following these steps, you should be able to resolve the MN235 error and ensure that your material is correctly classified for tax purposes.