Sales Tax code must be entered if the account is a Sales Tax account

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Posted on by Community Member Microsoft Employee

Hi,

While posting a payment journal, I'm getting this error "Sales Tax code must be entered if the account is a Sales Tax account'. In this payment journal, we're making direct entry into an account defined for VAT on expenses.

Thanks.

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Financial Management

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VC-05061644-0 2 on at

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Sales Tax code must be entered if the account is a Sales Tax account

I was able to resolve this by selecting a different GL account instead of my 100000 cash account.
I picked something in the 170000 range.
Also, I picked a vendor, and then that 170000 account.
I should have picked a vendor, and then a bank account. Not a ledger account.
saransh321 212 on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

Dear Crispin

as suggested by Ludwig the sales tax code has to be added . the sales tax code needs to be added only on the VAT Account that he is using in the journal, not on the other accounts or lines. Since the tax will be calculated automatically for other accounts.

Questioners should have the decency of replying and also tagging it answered once the query is resolved.

Thanks, Dr Ludwig and also Crispin for the answers.
Community Member Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

Thanks Ludwig for your time. I will update you the outcome.
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Ludwig Reinhard Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

[quote user="Santosh Thomas"]What i think is , change the setup back to as it was , reverse the full transaction. Correct the setup and post a journal entry. What is your thoughts.[/quote]

That's also what I would go for especially if you do not know what has been changed.

Before doing that, please test this carefully in a demo environment before doing it in live. Just the be sure that everything works out as intended.

Best regards,

Ludwig
Community Member Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

This is what surprises me. The first journal they have posted has no VAT code though the account posting type is VAT. But now when i am trying to post another one , it does not allow without a VAT Code for both lines (VAT Payable Control Account and VAT Recoverable Control Account) .

The only change after the first journal posting and before the second journal entry i can think of is correction of settlement period and adding a conditional VAT(Payment VAT Code) which was blank earlier.

Just to add this is for Spanish VAT.They hold 2 Spanish VAT Book for Receive and Pay. There was a mistake in which book type was All Book instead of VAT Payable and VAT receivable Book Type which is now corrected so VAT reports are fine.

What i think is , change the setup back to as it was , reverse the full transaction. Correct the setup and post a journal entry. What is your thoughts.
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Ludwig Reinhard Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

Hi,

Can you check whether the account is Setup as a sales tax account?

If this is the case then you should be able to post on that account directly if you enter a sales tax code in the general tab

Best regards,

Ludwig
Community Member Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

Thanks Ludwig, I am just a week into this business, so to early to say anything. However what i have seen is they have Cash Invoice VAT Code which they have recently added a conditional VAT and changed the Settlement period. Does that make any impact?

I tried with -ve line but with the same result.

"Posting results for journal batch number JBN-0xxxx Voucher GJL-000xxx VAT code must be entered if account number is a VAT account. "
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Ludwig Reinhard Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

Hello Saan Jones,

After posting the first transaction has something been change with the setup of your ledger accounts?

If you are able to post 15000 without an error you should also post -15000 without an error.

Probably ensure that you do not switch the DR or CR amount recorded but use the very same amount as recorded in the original transaction but with a negative sign in front.

Best regards,

Ludwig
Community Member Microsoft Employee on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

We have similar issue here

Last month there was a posted GJ journal between VAT Payable Control Account debit and VAT Recoverable Control Account credit for 15000. Both are Posting type VAT.

However i have noticed that at that time there was no VAT code specified. Now , user realised there was an error of 5000 exceess. Hence is passing another GJ entry opposite with value 5000. During posting it comes as "Posting results for journal batch number JBN-00xxx Voucher GJL-00xxxx VAT code must be entered if account number is a VAT account." And if you try to select a Vat code it comes up as "The Account that you are using has posting type Sales tax? if that is the case then you will have to provide Sales Tax code in this Journal."

Is there any way to resolve this?? By the way we are using D365.
Muhammad Saad 990 on at

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RE: Sales Tax code must be entered if the account is a Sales Tax account

The Account that you are using has posting type Sales tax? if that is the case then you will have to provide Sales Tax code in this Journal.