SAP Knowledge Base Article - Public

3757411 - Error "direct posting to tax account not permitted" when posting supplier invoice with purchase order reference

Symptom

When posting a supplier invoice with a purchase order reference, the system raises an error: "Direct posting to tax account is not permitted."

The issue reproduces during simulation in the Create Supplier Invoice app.

Environment

SAP S/4HANA Cloud Public Edition

Reproducing the Issue

  1. Open the Create Supplier Invoice app.
  2. Enter and reference an existing purchase order.
  3. Run Simulate.
  4. Observe the error "Direct posting to tax account is not permitted."

Cause

It is not possible to post to a tax G/L account when that tax account is assigned in the purchase order account assignment. For PO-referenced invoices, direct postings to tax accounts are blocked by design.

Resolution

Do not assign a tax G/L account in the purchase order account assignment. Use a non-tax G/L account for PO items; tax is posted automatically based on the tax code.

If a separate tax line must be posted directly to a tax G/L, post it as a direct G/L line in the G/L Account tab (non-PO-based) of the Create Supplier Invoice app. Direct posting to a tax account is not allowed via the PO reference.

See Also

2808805 - MIRO: error M8890 - Direct posting to tax account not possible

Keywords

direct posting to tax account not permitted, direct posting to tax account not possible, M8890, create supplier invoice, PO reference, purchase order referenced invoice, tax account in PO, G/L account tab, invoice posting error, s/4hana cloud, tax posting, supplier invoice simulation, blocked by design , KBA , MM-IV-INT-TAX-2CL , Tax (Public Cloud) , Problem

Product

SAP S/4HANA Cloud Public Edition all versions