This happens when the Tax Control Account assigned to the Tax Code is inactive. To fix this:
A) Verify the Tax Control Account used in the Tax Code Record
1. Navigate to Setup > Accounting > Tax Codes
2. Edit Tax Code
3. Check the values in the Purchase Tax Account and Sales Tax Account fields
B) Verify if the Tax Control Accounts are active
1. Navigate to Setup > Accounting > Tax Control Accounts
2. Show Inactives checkbox = T
3. If Inactive, uncheck the Inactive checkbox
4. Hit the Submit button
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