Xero Error - The TaxType code 'OUTPUT' cannot be used with account code

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Error

Houston, we have a problem. Invoice Draft can't be sent to Xero because of the following errors: The TaxType code 'OUTPUT' cannot be used with account code 'xyz'.

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Solution

The Account type in Xero is incorrect for the account in Tradify. For example, the account has been set up as a liability account in Xero, yet needs to be an Expense/Cost of Sales or Direct Cost Account Type.

If all account codes seem correct within the invoice, check the price list items account codes within Settings > Price Lists to ensure the valid account codes are also assigned to the price list items.

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