Tax account not found for chart of accounts &1, p. key &2, tax code &3

What causes this issue?

The tax account for procedure &1 posting key &2 and tax code &3 is not
defined.

System Response

Material document - tax calculation error.
To carry out automatic postings for tax items the account is required.

How to fix this error?

Please check the automatic postings for taxes in financials.

Error message extract from SAP system. Copyright SAP SE.