How To Fix MN488 - Item &2 in purchasing document &1 does not have a tax code

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 488

• Message text: Item &2 in purchasing document &1 does not have a tax code

What causes this issue?

&V3& = PO or material document
Item &V2& in purchasing document &V1& does not have a tax code. It is
not possible to update business volumes for
<DS:GLOS.3526C095AFAB52B9E10000009B38F974>subsequent settlement</>
from document type &V3& without a tax code.

System Response

The supplier business volumes cannot be updated.

How to fix this error?

Enter the tax code. You can then post the supplier business volumes.
Refer to the log for the exact document data.
SAP recommends having the tax code set in purchase order items
automatically.
You can determine whether or not purchase orders and scheduling
agreements can be saved without a tax code from the system message
(defined as either an error message or a warning) if you use <GL>
<GL:arrangement_type>rebate arrangement types with the time of the
update "purchase order/scheduling agreement" or "goods receipt".</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN488 - Item &2 in purchasing document &1 does not have a tax code ?

  The SAP error message MN488 indicates that there is a missing tax code for a specific item in a purchasing document. This error typically arises during the processing of purchase orders, purchase requisitions, or other procurement-related documents when the system expects a tax code to be defined for the item but cannot find one.
  Cause:
  
  Missing Tax Code: The item in the purchasing document does not have a tax code assigned to it.
  Incorrect Material Master Data: The material associated with the item may not have a tax classification set up in the material master.
  Vendor Master Data: The vendor may not have the appropriate tax information configured.
  Purchasing Info Record: If the item is linked to a purchasing info record, it may not have a tax code defined.
  Document Type Settings: The document type used for the purchasing document may not be configured to handle tax codes properly.
  
  Solution:
  
  
  Assign a Tax Code:
  
  Go to the purchasing document (e.g., purchase order) and check the item details.
  Manually assign a tax code to the item if it is missing.
  
  
  
  Check Material Master:
  
  Navigate to the material master (transaction code MM03).
  Check the accounting view and ensure that the tax classification is set correctly.
  
  
  
  Review Vendor Master:
  
  Use transaction code XK03 to check the vendor master data.
  Ensure that the tax information is correctly maintained for the vendor.
  
  
  
  Update Purchasing Info Record:
  
  If applicable, check the purchasing info record (transaction code ME13) for the item and ensure that a tax code is defined.
  
  
  
  Document Type Configuration:
  
  Consult with your SAP configuration team to ensure that the document type settings allow for tax codes and that they are configured correctly.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about which tax code to use, consult with your finance or accounting team to determine the appropriate tax code based on the item and jurisdiction.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  MM03: Display Material Master
  XK03: Display Vendor Master
  ME13: Display Purchasing Info Record
  ME21N: Create Purchase Order
  ME22N: Change Purchase Order
  
  
  
  Tax Code Configuration: Tax codes are typically configured in the SAP system under the Financial Accounting (FI) module. You may need to check with your SAP FI consultant for the correct setup.
  
  
  Documentation: Refer to SAP Help documentation for detailed information on tax codes and their configuration in the system.
  
  
  By following these steps, you should be able to resolve the MN488 error and ensure that the purchasing document is processed correctly.