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No tax recoverable or liability account exists for the tax rate or for its account source tax rate.

Hello,

I have created a Tax Rate with Tax Recoverable Account and Tax Liability Account provided.

The Tax Liability Account is working as expected, the account is taken for Receivables invoices GL postings.

The issue is with the Payables invoice. Whenever there is a Distribution Combination provided for the invoice line, the Natural Account from this combination is used for Tax posting (Debit side of posting). If no Distribution Combination is provided on invoice line then I am receiving an error: "No tax recoverable or liability account exists for the tax rate or for its account source tax rate."

Could you please help with determining what the rootcause is and how to solve this?

Howdy, Stranger!

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