Error - Tax code cant be entered for non-taxable items

Legacy KB ID: 5374

Question

Why do I get the error: “Tax code can't be entered for non-taxable items” when entering a transaction in Reckon One?

Answer

Activate Tax Tracking in Tax Settings, remove tax code assignments from accounts, turn off tax tracking. 

 

The Issue

This issue is likely to happen when you selected No Tax Tracking when configuring your Book and then selecting an Industry to supply your standard set of accounting categories (Chart of Accounts).  That selection contains some ledger accounts that have a tax code assigned to them.

When you include that account in a transaction Reckon One expects a Tax code, but as you have not enabled Tax Tracking and no allowance for a tax code is made, it cannot complete the transaction. 

This issue is being investigated and will be corrected in a forthcoming release.

 

Workaround

  1. Go to Settings > Tax Settings > General.
  2. In Are you registered for Tax, select Yes and Save.
  3. Go to Settings > Chart of Accounts > All.
  4. Sort the Tax column.
  5. Open the first account with a tax code.
  6. Change the Default Tax code field to None and Save & Close.
  7. Repeat for all accounts with a tax code. 
  8. Return to Settings > Tax Settings > General.
  9. In Are you registered for Tax, select Yes and Save.

 

Additional Information

You can avoid this situation by not selecting an Industry group for your Chart of Accounts during the configuration of your Book.

 



Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonone

Or Log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

Entering the FBT amount on the Payment Summary in Reckon One

The opening balance changes in a reconciliation when a transaction from previous month, is reconcile

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