Resolve Unexpected Error: “Transaction Subsidiary XXX Is Not Valid for Item -Not Taxable-…” Upon Saving Transaction

Scenario

Upon saving a transaction (Cash Sale, Sales Order, etc.), an unexpected error is received. Error details are showing: “Transaction subsidiary XXX is not valid for item -Not Taxable-. Please choose a different item.”

Solution

I.  Adjust the Subsidiary setup for Item

1. Navigate to Setup > Accounting > Tax Codes
2. Click Edit next to -Not Taxable- tax code
3. Subsidiaries: Select additional Subsidiary of the transaction
   or Include Children: Enter Checkmark
4. Click Save

II. Use a different Tax Code

1. Click Edit on the transaction where receiving the error
2. Tax Code: Select different Tax Code
3. Click Save