Tax code O1 does not appear in any G/L account item
We are getting this message "Tax code O1 does not appear in any G/L account item" when we try to create accounting document from customer invoice (VF01). We have not changed any tax code configuration and this seems to be issue with few customers only. I have compared the customer master data for the customers that do not have this issue and could not find any differences. Also, I have found that the materials on the order has been used on other orders for which we have successfully created the accounting document.
The customer tax classification is 1 for both UTXD and UTXJ. The material being used on order is also taxable. We have a condition in VK11 for UTXJ for country US that if both customer and material are taxable then use tax code "O1". So, this is working correctly.
I would appreciate if anyone can give me some pointer on how to resolve this issue.