Here’s a problem that a reader in QuickBooks and Beyond brought to me that I hadn’t seen before. Create an invoice, and when you try to save it you get a message “You must assign a Sales Tax Code to this line item…” . QuickBooks won’t let you save the invoice until you do. The problem is, sales tax isn’t enabled for this QuickBooks file! There isn’t a way to assign a Sales Tax Code. How can you get around this?
I have to admit, at first I was puzzled. The reader sent me a copy of the file, and sure enough, the sales tax preference was turned off.
But if you create an invoice with ANY detail item, you aren’t allowed to save it. You get this error:
It doesn’t make sense! There is no way to add any sales tax related items or codes, because sales tax is turned off!
Fortunately, the resolution to this was simple. The preference is just “stuck” on, and you have to “cycle” it to get rid of the message.
To do this, turn the sales tax preference on. Set the two “item code” preferences. Create a sales tax item with a 0.0% tax rate (any rate will do). Click OK to save preferences.
You will be asked if you want to make all existing customers and inventory/non-inventory parts taxable, uncheck those boxes (it isn’t necessary).
Next, go back to the preferences, turn sales tax off and click OK again to save them.
That’s it! Problem resolved! You don’t have to create an invoice or do anything else, just by “cycling” this preference the problem goes away.
Category: General Tips
About the Author (Author Profile)
Charlie Russell is the founder of CCRSoftware. He’s been involved with the small business software industry since the mid 70’s, focusing on inventory and accounting software for small businesses. Charlie is a Certified Advanced QuickBooks ProAdvisor. Look for Charlie’s articles in the Accountex Report blog, as well as his California Wildflower Hikes blog.