Tax code error message when changing from accrual to cash accounting

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jill bell
jill bell Member Posts: 5 ✭
edited May 2020 in Accounts Hosted
I'm trying to change the accounting method from accrual to cash in the preferences - tax section and when I click ok I get a 'tax code error' saying the tax code can't be used as the default.  Default tax codes must have both purchase and sales tax items linked. 
How do I fix this issue?
Thanks!

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  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
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    You will need to look into how the tax code you are using on the bill is setup.

    To do this go to Lists > Tax Code List > double-click on the tax code you're using > enter an item for 'Purchase Tax Item'.

    Hope this helps.

    Otherwise send a screen shot so we can see what else is ticked.

    Did your change change the default tax agency "Australian Tax office"?
  • Kris_Williams
    Kris_Williams Member Posts: 3,301 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
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    I just changed mine with no trouble, just ticked cash and okimage
  • jill bell
    jill bell Member Posts: 5 ✭
    edited July 2019
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    Yes, I've set up cash basis for several of my clients and have had no trouble.  It's just one client that I get this error for.
  • jill bell
    jill bell Member Posts: 5 ✭
    edited July 2019
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    Thank you for the response.  It's not bills.  It's in the preference tax setup as screen captured below.  And no, I didn't change the default tax agency.
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited July 2019
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    there is a tax code this client has that needs looking at, because you are changing tax it is warning you there is a problem with a tax code.   Check all tax items & codes to make sure all are correct and see if this helps.

    the error says.... Default tax codes must have both purchase and sales tax items linked.  ?Eliminate the obvious and it problem persists, get onto Tech support.

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