Hi Rosemary, which field are you scanning into? Item references only resolve where BC has an Item Reference No. field on the line, and that's mainly sales and purchase documents. On the item journal side it depends on your version — personalize the journal and see if Item Reference No. is even in the field list. If it's not there, scanning into Item No. will never find the barcode, and that's exactly the message you get.
If the field is there and it still fails, scan into Notepad first and look hard at what the scanner really sends. A trailing character or a leading zero is enough to break the match and you won't see it on the screen.
One more, you said test environment — make sure the reference row lives in the same company you're counting in, references are per company.
Glad to help - follow up if anything is unclear.
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Regards,
Grigorios Mavrogeorgis
Business Central Consultant & AL Developer
Work: Gmsoft Limited
Blog: insidebusinesscentral
LinkedIn: linkedin.com/in/gregorymavrogeorgis