How To Fix V4180 - Customer material &1: The value-added tax code is different

SAP Error Message - Details

• Message type: E = Error

• Message class: V4 - Nachrichten Verkauf (Variable Meldungen und EDI-Meldungen)

• Message number: 180

• Message text: Customer material &1: The value-added tax code is different

What causes this issue?

The value-added tax indicator sent in by the customer for customer
material &V1& (material &V2&) does not match the indicator determined
by the system:
The value-added tax indicator from the IDoc is &V3&
The value-added tax indicator determined by the system is &V4&

System Response

The system terminates processing of the intermediate document (IDoc).

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message V4180 - Customer material &1: The value-added tax code is different ?

  The SAP error message V4180, which states "Customer material &1: The value-added tax code is different," typically occurs during sales order processing when there is a mismatch between the VAT codes associated with the customer and the material being sold. This can lead to issues in tax calculation and compliance.
  Cause:
  
  Mismatch in VAT Codes: The VAT code assigned to the customer in their master data does not match the VAT code assigned to the material in the material master data.
  Different Tax Jurisdictions: The customer and the material may be in different tax jurisdictions, leading to different VAT codes being applied.
  Changes in Tax Configuration: Recent changes in tax configuration or updates in tax codes may have led to inconsistencies.
  Incorrect Master Data: Either the customer master data or the material master data may have been incorrectly maintained.
  
  Solution:
  
  
  Check Customer Master Data:
  
  Go to the customer master record (transaction code XD03 for display).
  Verify the VAT code assigned to the customer. Ensure it is correct and appropriate for the customer's location and tax status.
  
  
  
  Check Material Master Data:
  
  Go to the material master record (transaction code MM03 for display).
  Verify the VAT code assigned to the material. Ensure it is correct and appropriate for the type of goods being sold.
  
  
  
  Update VAT Codes:
  
  If there is a mismatch, update the VAT code in either the customer master or the material master to ensure they match.
  Ensure that the VAT codes are valid and active in the system.
  
  
  
  Review Tax Configuration:
  
  If necessary, review the tax configuration settings in the system (transaction code OBYZ for tax codes).
  Ensure that the tax codes are correctly set up for the relevant jurisdictions.
  
  
  
  Consult with Finance/Tax Department:
  
  If you are unsure about the correct VAT codes, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Test the Changes:
  
  After making the necessary changes, try to create or process the sales order again to see if the error persists.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  Documentation: Review SAP documentation related to VAT configuration and sales order processing for further insights.
  User Forums: Consider checking SAP community forums or user groups for similar issues and solutions shared by other users.
  
  By following these steps, you should be able to resolve the V4180 error and ensure that the VAT codes are correctly aligned for the customer and material involved in the transaction.