If you have received the error Business validation error, the account ______ can’t be used with tax rate ______ this error means that the tax rate being used doesn’t match with the account type that has been selected.
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For Example you may receive this error message -
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LMB42, if you have used the defaults would be for Shipping (This is the amount the customer has paid you for Shipping) and therefore should be a revenue account.
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In this case LMB42 had been set up in the chart of accounts as an Expense type account so the system would not allow OUTPUT2 which is VAT on income to be allocated to an Expense account.
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You would then need to change the LMB42 to a Revenue type account in your chart of account and leave the VAT rate as it is.
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Sometimes however the error can do the other way around!
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Reason : A validation exception occurred (The TaxType code "INPUT2" cannot be used with account code "LMB42")
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So in the scenario the LMB42 account has been correctly set up as a Revenue account but the Tax code "INPUT2" is an expense VAT code and cannot be used for the Revenue account LMB42.
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If you have any questions on this or anything else please get in touch with [email protected] and we would love to help you resolve any queries you may have.
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