You cannot track tax on accounts of types Accounts Receivable and Accounts Payable error

I'm more than happy to help you shed clarification about tracking tax on accounts of types Accounts Receivable and Accounts Payable.

Are you trying to categorise a downloaded deposit transaction? This error will occur when you incorrectly classify a downloaded deposit transaction as Accounts Receivable or Accounts Payable with a tax. You'll want to double-check and ensure you select the appropriate category. Here's how:

1. Go to + New and select Bank Deposit.
2. From the Account ▼ dropdown, choose the account appropriate you want to put the money into.
3. Choose the checkbox for each transaction you want to combine.
4. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
5. Click Save and new or Save and close.

For detailed information, refer to this article: Record and make bank deposits in QuickBooks Online.

I'm adding these articles you can use in the future:

• Categorise online bank transactions in QuickBooks Online.
• Set up bank rules to categorize online banking transactions in QuickBooks Online.

If you have any further questions or need assistance with your tax tracking and transactions in QuickBooks Online, feel free to reach out again. Have a great day!