How To Fix O5124 - No tax exemption licenses assigned to item.

O5124 - Overview

• Message type: E = Error

• Message class: O5 - IS-Oil: MCOE message pool

• Message number: 124

• Message text: No tax exemption licenses assigned to item.

What causes this issue?

No tax exemption license is assigned to the item.
Tax exemption licenses are only used in North America.

System Response

How to fix this error?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message O5124 - No tax exemption licenses assigned to item. ?

  The SAP error message O5124, "No tax exemption licenses assigned to item," typically occurs in the context of sales and distribution (SD) or materials management (MM) when a tax exemption is required for a particular item, but no valid tax exemption license has been assigned to that item in the system.
  
  Cause:
  
  Missing Tax Exemption License: The item in question does not have a tax exemption license assigned to it in the master data.
  Incorrect Configuration: The tax exemption settings in the system may not be configured correctly.
  Customer-Specific Settings: The customer may require a tax exemption, but the necessary licenses have not been set up in the customer master data.
  Document Type Restrictions: The document type being used may not allow for tax exemptions.
  
  
  Solution:
  
  
  Assign Tax Exemption License:
  
  Go to the relevant item in the material master or customer master data.
  Navigate to the tax information section and ensure that a valid tax exemption license is assigned