This article has the main objective of explaining how the configuration of an account could be causing an error when uploading beginning balances or simply when creating a journal entry using an account with a Posting type - sales tax.
The below topics are discussed in this article.
Account Configuration – Posting Type
When working with the configuration of an account there is a field with the name “Posting Type”. The “Posting Type” field has the purpose of only allowing transactions of the selected type to post to the main account. This configuration can be combine with other posting validations like “User ID”, “Validate user” and “Posting Type Validation”.
The configuration of a main account can be revise in the following path:
General Ledger > Chart of Accounts > Choose the desired account > Navigate to the Posting validation tab.
Error message when trying to post a journal entry
When creating a journal entry that involves an account that has the configuration of the Posting Type – Sales tax, you could run into the following error when trying to post the journal entry.
The following error can occur
This error occurs because one of the accounts you are using has a Posting Type – Sales tax. When this occurs, the system will not let you post the journal entry until you defined the sales tax code that is related to that sales tax account.
Assign the corresponding sales tax code to the journal line.
Generally, an account that has the configuration of Posting Type – Sales tax, should have a sales tax code associated to that account. To identify the corresponding sales tax code that is associated to that main account follow these steps:
- Go to: Tax > Setup > Sales tax > Ledger Posting group
- Verified what code is associated to the main account with the Sales tax posting type configuration.
- Go to the journal line and assign the corresponding sales tax code. To perform this action:
- Go to the journal entry
- Select the journal line which has the main account with Sales tax posting type
- Go to the “General” tab
- In the Sales tax code, assign the corresponding code to the journal line.
- Click Save
Note: The assignment of the sales tax code can only be completed if the account has the posting type configuration of “Sales tax”. If the account does not have this configuration, the system will delete the selected sales tax code once you try to save the changes.
Change the Posting type configuration of the main account
This apply specifically when the journal entry is for uploading account beginning balances and the posting type is not that important. Sometimes the main account have the posting type configuration of “Sales tax” but do not have any sales tax code associated to the account. In this scenario, the user can change the configuration of the posting type field and left it in blank.
Once you change the configuration, the system should let you post the journal entry. After posting the journal entry, remember to change back the configuration to the “Sales tax” in the posting type field.