How To Fix NAA285 - There is no output tax code for item &2 in customer settlement &1

SAP Error Message - Details

• Message type: E = Error

• Message class: NAA - Subsequent settlement (Purchasing)

• Message number: 285

• Message text: There is no output tax code for item &2 in customer settlement &1

What causes this issue?

Item &V2& in customer settlement &V1& does not have an output tax code.
You cannot update the business volume from the subsequent settlement
without an output tax code.

System Response

The business volume update cannot be carried out.

How to fix this error?

This situation should never 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.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message NAA285 - There is no output tax code for item &2 in customer settlement &1 ?

  The SAP error message NAA285 indicates that there is no output tax code defined for a specific item in a customer settlement. This error typically arises during the processing of customer settlements in the SAP system, particularly in the context of billing or invoicing.
  Cause:
  The error can occur due to several reasons:
  
  Missing Output Tax Code: The output tax code for the specified item is not maintained in the system. This could be due to incorrect configuration or missing entries in the tax code settings.
  Incorrect Configuration: The tax determination procedure may not be set up correctly, leading to the system being unable to find a valid output tax code for the item.
  Item Category Issues: The item category used in the customer settlement may not be configured to allow for tax determination.
  Master Data Issues: The customer master data or material master data may not have the necessary tax information maintained.
  
  Solution:
  To resolve the NAA285 error, you can take the following steps:
  
  
  Check Output Tax Code Configuration:
  
  Go to the transaction code OB40 (or the relevant configuration path) to check the output tax codes.
  Ensure that the output tax code is defined for the relevant country and tax type.
  
  
  
  Review Tax Determination Procedure:
  
  Check the tax determination procedure assigned to the relevant sales area (sales organization, distribution channel, division).
  Ensure that the procedure is correctly configured to determine the output tax code based on the item category and other relevant criteria.
  
  
  
  Verify Item Category:
  
  Check the item category used in the customer settlement. Ensure that it is configured to allow for tax determination.
  You can review the item category settings in the transaction code VOV6.
  
  
  
  Check Master Data:
  
  Review the customer master data (transaction code XD03 or VD03) to ensure that the tax classification is correctly maintained.
  Check the material master data (transaction code MM03) for the relevant tax information.
  
  
  
  Test with Different Scenarios:
  
  If possible, test the settlement process with different items or customers to see if the issue is isolated to specific entries.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for additional guidance on tax configuration and troubleshooting.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  OB40: Maintain Output Tax Codes
  VOV6: Configure Item Categories
  XD03/VD03: Display Customer Master
  MM03: Display Material Master
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address known issues or provide additional guidance on tax configuration.
  
  
  Support: If the issue persists after checking the above configurations, consider reaching out to your SAP support team or consulting with an SAP expert for further assistance.