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Level 1

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

 
10 REPLIES 10
QuickBooks Team

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Welcome aboard to the Intuit Community, kath3.


Thanks for being part of the QuickBooks family. Let's sort out why you're getting while tracking transactions.


Just to clarify what are you trying to do when you receive the error? If you created an expense and added a tax code with the rate, the program wouldn't allow you to directly enter a VAT on the transaction.

 

Instead, you’ll have to make a bill and input the VAT from there. Here's how:

 

  1. Click on the Plus icon at the top.
  2. Select Bill.
  3. Fill in the necessary fields.
  4. In the VAT column, enter the correct rate.
  5. Click on Save.

You should now be able to track transactions seamlessly. 

 

If this isn’t the case, I appreciate if you can add more details to help me get on the same page. Looking forward to hearing from you. Thanks in advance.

 

Level 1

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Hiya,

 

In the bank feed I have a few overpayments and refunds for customers and I can seem to assign them back to the customer.  When I try and assign to the debtors which I used to do, it comes up with the error message.  Maybe it might be worth a call so I can show you?

 

Thanks

Kath

QuickBooks Team

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Hey Kath,

 

Are you trying to select a VAT code for this transaction when on the Bank Feed?

 

Try and do this outside of the bank feed - using the Plus Icon to create the transaction. Put the date on the transaction matching the date on your bank feed, and the amounts match, it'll find a Match without this error.

 

 

Level 1

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Hi,

 

Q'books is linked to my bank account and the transactions flow in for review. When an invoice is paid it flows through as the category Debtor , until today that is, I clicked this and everything matched. Now I am getting the above error message.  Help! I can't add the transaction to the account so just waiting for review.

Level 1

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Hello Team

 

Sorry to reply on this msg but I also have query which need solution for it please advise the way so that I can place the entries in bank properly to the proper ledger account

QuickBooks Team

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Hi VVV2,

 

We'd be happy to help you with that - which ledger account are you attempting to post the entry to? 

Level 1

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Point no. 1 - We received payment from our Logistic partner approx. 35,000 and when we chose

Transaction Type - Deposit, Customer - Blockchain Courier - Client COD (Under Account Receivable), Category - Blockchain Courier - Client Cod,  (Under Account Receivable)

Tax - (…..) I do not know what to define or add.

 

Even if I add the Vat Input 14% the message comes "You cannot track tax on accounts of types Accounts Receivable and Accounts Payable" (This attachment already uploaded in first reply)

 

Please help me its really concern to me to know why I am getting this issue even on Supplier payment when we are uploading bank entry and then trying to map in the concern ledger but not getting mapped.

(This attachment uploaded now)

QuickBooks Team

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Hello VVV2, 

 

Thanks for coming back to us with more information. 

 

So it is because you are trying to post VAT on a debtors account which you cant do as it's a payment on account type. You need to select 20%s vat code and in the taxes vat setting have FRS set up at the correct rate so your 14% then it will calculate the amount correctly for you. So no use debtors/creditors for these types of transactions because it won't let you add vat on. You need a physical transaction to apply it to. 

Level 1

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Thanks Ashleigh1, but can you help me with some screenshot how that can be done as I am trying to do not happening.

QuickBooks Team

Error message 'you cannot track tax on accounts of types Debtors and Creditors' - what to do?

Good day, VVV2.

 

I understand that you need to fix the error message when you add the downloaded transaction.

 

We need to make sure that you successfully set up the tax. If you haven't yet, please check his link for your reference: Set up tax.

 

If this issue persists, please reach out to our QuickBooks Online Support Team. They can further investigate why it requires a tax code when categorizing transactions.

 

Here's how to get in touch with our support:

  1. Click Help (?) at the top right.
  2. Enter the entire error message and click Let's talk.
  3. Select Contact Us to connect with a live support agent.

I'll be here if you need more help. Thank you and stay safe!