You must assign an account for this transaction
Lately, I have a few customers having the same error with QuickBooks (Version 2004, 2005/06 and 2007/08). When they try to enter an invoice or bill, QuickBooks prompted an error message ‘You must assign an account for this transaction’.
I have checked both Chart of Accounts and Item list; it does not seem to have any issue. Besides, no error found when I run a Verify Data and Rebuild Data. It just not allows me to save the transaction. What could be the problem?
I did a test, I removed the ‘Require accounts’ setting from the Preferences. I did an Invoice again, since I removed the Require Accounts setting; it allows me to save the transaction. From the transaction journals, I found that the Tax Payable account was missing. Instead of crediting the Tax Payable account it crediting Uncategorised Income account. Ha! I found the problem.
It seems that the Tax Code, Tax Preference or Tax Payable account was having a problem; it may be corrupted and cause the selected Tax Code not able to register with the associated Tax Account. I turn off the Tax Preferences, save it. Then, I turn on the Tax Preferences back again to allow the setting to refresh. Next, I set the ‘Require Account’ back to its original setting.
I entered an invoice again, this time I can save the transaction without an error message prompted. I view the transaction journal, it presented nicely with debiting of Accounts Receivable account and crediting both Sales and Tax Payable account.