Error: Tax Status of Summary BP is Not Permitted

The following error message means that the Tax Status on both the parent Business Partner and child Business Partner being consolidated must be the same.

Tax Status of summary BP is not permitted.

To correct this:

1. Find the Tax Status. On the main menu, go to Business Partners > Business Partner Master Data. Search for the Business Partner by code or name. On the Business Partner Master Data record, go to the Accounting tab > Tax tab, to find the tax statuses.
2. Set the statuses to be the same on both the parent and child Business Partners.

For more information, read this SAP blog.