How To Fix MN418 - Different tax codes in supplier business volume and settlement document

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 418

• Message text: Different tax codes in supplier business volume and settlement document

What causes this issue?

Settlement for a condition record of rebate arrangement &V1& is
performed using a billing document as the settlement document
(debit-side settlement). Processing is via the general billing interface
in the system.
In the process, the tax payable is determined via the appropriate
settings of the settlement material (tax classification material and
debtor, country of plant/company code (settlement at purchasing
organization level).
The resulting tax indicator determined - &V2& - differs from the tax
indicator &V3& of the supplier business volume. This is not allowed.

System Response

Settlement accounting with regard to condition record &V4& is not
possible.

How to fix this error?

Maintain a different settlement material or change the tax
classification of the settlement material. However, note that the
settlement material may also be subject to other usage in the system.
The (internal) number of the condition record affected is &V4&.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN418 - Different tax codes in supplier business volume and settlement document ?

  The SAP error message MN418, which states "Different tax codes in supplier business volume and settlement document," typically occurs during the settlement process in SAP when there is a mismatch between the tax codes used in the supplier business volume and those in the settlement document. This can happen in various scenarios, such as when processing invoices, payments, or settlements related to purchase orders or service entries.
  Cause:
  
  Mismatched Tax Codes: The tax code used in the supplier invoice or business volume does not match the tax code in the settlement document.
  Configuration Issues: There may be configuration issues in the tax settings or in the way tax codes are assigned to different transactions.
  Data Entry Errors: Manual entry errors during invoice processing or settlement can lead to discrepancies in tax codes.
  Changes in Tax Codes: If tax codes have been changed or updated in the system, existing documents may still reference the old codes.
  
  Solution:
  
  Check Tax Codes: Review the tax codes used in both the supplier business volume and the settlement document. Ensure they match.
  Adjust Documents: If there is a mismatch, you may need to adjust the relevant documents. This could involve changing the tax code in the invoice or the settlement document to ensure consistency.
  Review Configuration: Check the configuration settings for tax codes in the SAP system. Ensure that the tax codes are correctly set up for the relevant company codes and transaction types.
  Reprocess Transactions: If the issue is due to data entry errors, you may need to reverse and reprocess the affected transactions with the correct tax codes.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling tax code discrepancies.
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like FB60 (Enter Incoming Invoices) or F-53 (Post Outgoing Payments) to review and adjust invoices and payments.
  Tax Configuration: The configuration for tax codes can be found in the SAP IMG under Financial Accounting (FI) > Financial Accounting Global Settings > Tax on Sales/Purchases.
  SAP Notes: Check for any relevant SAP Notes that may address known issues or provide additional guidance on handling tax code discrepancies.
  Testing: After making adjustments, it is advisable to test the settlement process in a development or quality assurance environment before applying changes in the production environment.
  
  By following these steps, you should be able to resolve the MN418 error and ensure that your tax codes are consistent across all relevant documents.