Scenario

When creating a Sales or Purchase Transaction, Tax Code is undefined. Provided the following set up on the tax code:

- Tax Code is Active

- Tax Code is shared among subsidiaries or to the subsidiary of the transaction
- Purchase and Sales Tax accounts tagged to Tax Code are active under Setup > Accounting > Tax Control Accounts
- The vendor set in the Tax agency is active and the category is Tax Agency in the vendor record

Solution

Tax Code should be available on both Sales or Purchase transaction or should be available on the specific transaction that you are trying to create.

1. Navigate to Setup > Accounting > Tax Codes
2. Click Edit next to the Tax code
3. Set Available On field to "Both" if you want the tax code be applied on both Sales and Purchase transactions
4. Click Save