How To Fix MN887 - Item &2 of settlement document &1 has no output tax code

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 887

• Message text: Item &2 of settlement document &1 has no output tax code

How to fix this error?

This situation should not occur.
INCLUDE ISR_SYSTEMFEHLER OBJECT DOKU ID TX

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

What causes this issue?

Item &V2& of settlement document &V1& does not have an output tax code.
It is not possible to update business volumes in the subsequent
settlement without an output tax code.

System Response

Business volumes cannot be updated.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN887 - Item &2 of settlement document &1 has no output tax code ?

  The SAP error message MN887 indicates that there is an issue with the output tax code for a specific item in a settlement document. This error typically arises during the settlement process in SAP, particularly when dealing with financial transactions that involve tax calculations.
  Cause:
  The error message MN887 occurs when:
  
  Missing Output Tax Code: The item in the settlement document does not have a valid output tax code assigned to it. This can happen if the tax code is not maintained in the master data or if it has been deleted or deactivated.
  Incorrect Configuration: The tax configuration in the system may not be set up correctly, leading to the absence of a valid tax code for the transaction.
  Document Type Issues: The document type used for the settlement may not be configured to allow for the assignment of an output tax code.
  
  Solution:
  To resolve the MN887 error, you can take the following steps:
  
  
  Check the Item Details:
  
  Go to the settlement document in question and check the details of item &2. Ensure that an output tax code is assigned.
  
  
  
  Maintain Tax Code:
  
  If the output tax code is missing, you may need to assign a valid tax code. This can be done in the relevant master data (e.g., material master, vendor master, etc.) or directly in the settlement document.
  
  
  
  Review Tax Configuration:
  
  Check the tax configuration in the SAP system. Ensure that the tax codes are correctly defined in the system and that they are active. You can do this by navigating to the transaction code OBYZ (for tax code configuration) and verifying the settings.
  
  
  
  Document Type Settings:
  
  Review the settings for the document type used in the settlement. Ensure that it is configured to allow for the assignment of output tax codes.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct tax code to use, consult with your finance or accounting team to determine the appropriate tax code for the transaction.
  
  
  
  Test the Changes:
  
  After making the necessary changes, try to process the settlement document again to see if the error is resolved.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FB03 (Display Document), FBL1N (Vendor Line Item Display), and OBYZ (Maintain Tax Codes).
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  Documentation: Review SAP documentation on tax configuration and settlement processes for further insights.
  
  By following these steps, you should be able to identify and resolve the issue causing the MN887 error in your SAP system.