NSC | Create Invoice > Error on Tax Agency and Subsidiary

Micah Timbol-Oracle

Scenario:

The user is creating an invoice for Subsidiary ABC, and selects a Tax Code that uses Tax Agency California Tax Board. However, upon saving the invoice, the following error appears:

No tax agency defined for subsidiary: subsidiary ABC is not linked to nexus California

This error typically occurs when the selected Tax Code on the transaction references a Tax Agency that is not properly associated with the Subsidiary or is not configured as a Tax Agency in the system.

Solution:

To resolve this issue, the User should verify and update the Tax Code, Tax Agency, and Subsidiary associations. Follow the steps outlined below:

Step 1: Identify the Tax Code Used in the Transaction | Review the Invoice and identify the Tax Code that is selected. Take note of the Tax Agency associated with this Tax Code.

Step 2: Associate the Subsidiary to the Tax Agency

1. Navigate to Setup > Accounting > Tax Codes.
2. Locate and open the relevant Tax Code.
3. In the Tax Code record, click on the Tax Agency field value to access the associated Tax Agency record.
4. Click Edit on the Tax Agency record.
5. Go to the Subsidiaries tab.
6. Add the appropriate Subsidiary to the list.
7. Click Save to apply the changes.

Step 3: Ensure the Tax Agency is Marked as a Tax Agency

1. Navigate to Setup > Accounting > Accounting Lists.
2. Search for and edit the relevant Tax Agency record.
3. Ensure the Tax Agency checkbox is marked True. Take note that this enables the Tax Agency to be selectable in the Tax Code > Tax Agency field.
4. Click Save.

Step 4: Re-associate the Tax Agency to the Tax Code

1. Navigate to Setup > Accounting > Tax Codes.
2. Locate and Edit the affected Tax Code.
3. In the Tax Agency field, select a Different Tax Agency and click Save.
4. Edit the Tax Code again.
5. Re-select the Original Tax Agency value in the Tax Agency field.
6. Click Save.

After completing the above configuration steps, the User should return to the transaction entry screen and attempt to recreate the invoice. The error message should no longer appear, as the Subsidiary is now correctly linked to the Tax Agency and Nexus through the proper Tax Code configuration.

In the scenario above, here’s what the user needs to do;

1. Open the Tax Code and view the associated Tax Agency (California Tax Board).
2. In the Tax Agency record, add Subsidiary ABC under the Subsidiaries tab.
3. Verify that the Tax Agency checkbox is marked.
4. Re-assign the Tax Agency on the Tax Code by switching to a temporary agency and then switching back to California Tax Board.
5. Finally, recreate the invoice, which now saves successfully without error.

Hope this helped!