Posting to general ledger account &1 &2 without tax code not permitted

What causes this issue?

The G/L account defined in Customizing for cash discount postings only
permits postings with tax codes. In this particular case, cash discount
was granted for an open item that does not have a tax code. Since there
is no tax code for the open item, there is also no tax code for posting
the cash discount.

System Response

The clearing document is not posted.

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

If you want to use the G/L account for postings to which no tax
applies, select the indicator <LS>posting without tax allowed</> in the
G/L account master record. <DS:TRAN.FS02>Goto activity</>
If the system determined the wrong account, change the account
determination in Customizing.
INCLUDE FICA_NA_F5_1 OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.