Resolve Error : “The subsidiary restrictions on this record are incompatible with those defined for account: XXX. Subsidiary access on this record must be a subset of those permitted by the account.”

User receives error that says “The subsidiary restrictions on this record are incompatible with those defined for account: XXX. Subsidiary access on this record must be a subset of those permitted by the account.” after changing Accounts of an Item.

This usually happens when the subsidiaries supported by the item is not supported by the account and vice versa.

Solution

1. Navigate to Setup > Accounting > Chart of Accounts
2. Click Edit on Affected Account
3. Subsidiaries: Select Subsidiaries supported by Item
4. Click Save