How To Fix V1089 - For tax category &1, indicator &2 is not defined

SAP Error Message - Details

• Message type: E = Error

• Message class: V1 - Verkaufsbelegbearbeitung

• Message number: 089

• Message text: For tax category &1, indicator &2 is not defined

What causes this issue?

The tax code of material &V2& is not allowed in combination with tax
category &V1&.
INCLUDE 'NA_NO_PROCESSING_1' OBJECT DOKU ID TX LANGUAGE E
INCLUDE 'NA_CHECK_ENTRY' OBJECT DOKU ID TX LANGUAGE E
If necessary, and if you have the authorization, you can create tax
categories for the material, carry out changes, and display entries
already maintained, in <GL:customizing>Customizing</>.

<ds:TRAN.OVK4>Proceed</>
ENDIF

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message V1089 - For tax category &1, indicator &2 is not defined ?

  The SAP error message V1089 indicates that there is a configuration issue related to tax categories in the system. Specifically, it means that for the specified tax category (&1), the system cannot find a definition for the specified indicator (&2). This typically occurs during the processing of sales documents, such as sales orders or invoices, when the system attempts to determine the appropriate tax treatment.
  Cause:
  
  Missing Configuration: The tax category or indicator has not been properly defined in the system. This could be due to missing entries in the tax configuration tables.
  Incorrect Tax Code: The tax code being used may not be correctly linked to the tax category or indicator.
  Changes in Tax Regulations: If there have been recent changes in tax regulations, the system may not have been updated accordingly.
  Data Migration Issues: If data has been migrated from another system, there may be inconsistencies or missing configurations.
  
  Solution:
  
  
  Check Tax Configuration:
  
  Go to the SAP transaction code OBYZ (or OB40 for tax codes) to review the tax category and ensure that the indicator is defined correctly.
  Ensure that the tax category and indicator are properly linked in the configuration.
  
  
  
  Define Missing Entries:
  
  If the indicator is missing, you will need to define it in the tax configuration settings. This may involve creating a new entry or modifying an existing one.
  
  
  
  Review Tax Codes:
  
  Check the tax codes being used in the sales document. Ensure that they are correctly assigned to the appropriate tax categories and indicators.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team to ensure that all necessary configurations are in place.
  
  
  
  Testing:
  
  After making changes, test the sales document processing to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  OBYZ: Maintain Tax Categories
  OB40: Maintain Tax Codes
  V/06: Maintain Pricing Procedure
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  User Roles: Ensure that the user has the necessary authorizations to make changes to tax configurations.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in SAP tax configuration.