How to resolve Item Tax Group Error in Sage Intacct for Education

When dealing with Purchasing and Order Entry transactions, Items are required to be selected.  If a new Customer, Supplier or Item has not not been configured correctly, a common error can occur which will stop you from creating the transaction.

In Purchasing, this is the error you would receive.

In Order Entry, the error received is below.

Following the steps outlined in this article, you will be able to know what to check, and how to resolve the issue.

NOTE - All of these changes should be made at Top Level.

Purchasing

There are two areas that will need to be checked, the Item record and the Supplier record.

To check the Item record

1. Go to applications > Purchasing > All > Items.
2. Search for the Item affected and Edit.
3. In the General Tab of the record, scroll to the Sales section.  This is at the bottom of the page. NOTE - Although it is called Sales, it applies to Sales and Purchasing transactions.
4. In here, make sure that the Taxable box is ticked, and that you have selected the Item Tax Group required.  In my example below, I used Services Standard Rate.
5. When happy, click Save.

To check the Supplier record

1. In Applications > Purchasing > All > Suppliers, find the Supplier record required and click Edit.
2. In the Additional Information tab, scroll to the Tax Calculation section.
3. In this section, Taxable needs to be ticked.  Contact tax group needs to be UK Suppliers.  Default tax schedule should be blank.  This should be picked up from the Item record.
4. In addition to this, the Contact record may cause the issue.  Go to the Contact list tab in the Supplier record.
5. If there is a Contact in here, click into the field and then click view.  This will open the Contact record.
6. In the Contact record, go to the Additional Information tab.  This should have a tick in Taxable, Contact tax group should be UK Suppliers and there should be nothing in Default tax schedule.
7. When happy Save/Close the Contact record.
8. Save the Supplier account.

Order Entry

There are two areas that will need to be checked, the Item record and the Customer record.

To check the Item record

1. Go to applications > Order Entry > All > Items.
2. Search for the Item affected and Edit.
3. In the General Tab of the record, scroll to the Sales section.  This is at the bottom of the page.
4. In here, make sure that the Taxable box is ticked, and that you have selected the Item Tax Group required.  In my example below, I used Services Standard Rate.
5. When happy, click Save.

To check the Customer record

1. In Applications > Order Entry > All > Customers, find the Customer record required and click Edit.
2. In the Additional Information tab, scroll to the Tax Calculation section.
3. In this section, Taxable needs to be ticked.  Contact tax group needs to be UK Customers.  Default tax schedule should be blank.  This should be picked up from the Item record.
4. In addition to this, the Contact record may cause the issue.  Go to the Contact list tab in the Customer record.
5. If there is a Contact in here, click into the field and then click view.  This will open the Contact record.
6. In the Contact record, go to the Additional Information tab.  This should have a tick in Taxable, Contact tax group should be UK Customers and there should be nothing in Default tax schedule.
7. When happy Save/Close the Contact record.
8. Save the Customer account.

If you now process a Purchasing/Order Entry transaction, the issue should be resolved following the steps above.  If not, please contact ION support, raising a ticket in Zendesk or emailing support@ionhq.co.uk