How To Fix VMD_API023 - Tax grouping &1 has not been created for vendor &2

SAP Error Message - Details

• Message type: E = Error

• Message class: VMD_API - Vendor APIs

• Message number: 023

• Message text: Tax grouping &1 has not been created for vendor &2

What causes this issue?

There are two possibilities:
The record has been marked for insertion and already exists in the
database of the ECC table (LFAT).
The record has been marked for deletion and still exists in the database
of the ECC table (LFAT).

System Response

In the first case, the system terminates processing. In the second case,
it proceeds with processing and issues the message as a warning.

How to fix this error?

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

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message VMD_API023 - Tax grouping &1 has not been created for vendor &2 ?

  The SAP error message VMD_API023 indicates that a tax grouping has not been created for a specific vendor. This error typically arises in the context of vendor master data management, particularly when dealing with tax-related configurations.
  Cause:
  The error occurs when:
  
  A vendor is being processed (e.g., during invoice processing, vendor creation, or updates) and the system checks for the existence of a tax grouping.
  The specified tax grouping for the vendor does not exist in the system, which is required for tax calculations or reporting.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Create the Tax Grouping:
  
  Navigate to the transaction code OBD2 (or use the appropriate path in your SAP system).
  Create a new tax grouping for the vendor by entering the necessary details.
  Ensure that the tax grouping is correctly configured with the appropriate tax codes and rates.
  
  
  
  Assign the Tax Grouping to the Vendor:
  
  Go to the vendor master data using transaction code XK02 (or MK02 for purchasing data).
  Select the appropriate company code and purchasing organization.
  In the tax data section, assign the newly created tax grouping to the vendor.
  
  
  
  Check Configuration:
  
  Ensure that the tax codes and groupings are correctly configured in the system.
  Verify that the tax settings in the company code are correctly set up to allow for the use of tax groupings.
  
  
  
  Testing:
  
  After making the changes, test the vendor transaction again to ensure that the error no longer appears.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  XK01: Create Vendor
  XK02: Change Vendor
  XK03: Display Vendor
  OBD2: Maintain Tax Groupings
  
  
  
  Documentation:
  
  Refer to SAP Help documentation for detailed information on tax configuration and vendor master data management.
  
  
  
  User Roles:
  
  Ensure that the user has the necessary authorizations to create or modify tax groupings and vendor master data.
  
  
  
  Consulting with SAP Support:
  
  If the issue persists after following the above steps, consider reaching out to your SAP support team or consulting SAP Notes for any known issues or patches related to this error.
  
  
  
  By following these steps, you should be able to resolve the VMD_API023 error and ensure that the vendor is properly configured for tax purposes.