NSC | Resolve Error: "Account VAT on Sales on tax line is not valid.." When Creating an Invoice

Scenario

The user has recently established a new subsidiary and assigned the necessary tax codes. However, they encounter an error when attempting to save an invoice for this subsidiary. The error message is: "Account VAT on Sales on tax line is not valid for transaction Subsidiary XX. Please check the validity of the Account". They want to know how to resolve this.

Solution

The common reason users encounter this error is when the accounts used are not associated to the subsidiary.

To resolve the error, the user may do the following:

1. Open the following accounts under Lists > Accounting > Accounts

2. Make sure that the related subsidiary mentioned in the error was selected under