One or more line items in the order are assigned to an Account in Xero which cannot be used with the Tax Type

What this Means

Xero enforces rules about which tax rates can be applied to which ledger accounts. Each Tax Type (e.g. “Revenue”) is only valid on certain account categories ("Revenue" account with "Revenue" tax type). This error indicates that one or more products on the order are mapped to an account code that isn’t permitted for the chosen tax rate.

Resolution Steps

1. Log in to Xero

   Sign in to your organisation’s Xero account.

2. Navigate to Products and Services

   Navigate to Business → Products and Services (or visit Xero's Help Article - Add an Inventory).

3. Locate the affected items

   For each product in the error order, use the search bar to find its record.

4. Verify Purchase & Sales accounts

   In the Purchase and Sales sections, confirm that the assigned account codes are compatible with the product’s Tax Type.

   • If they aren’t, select an appropriate account from the dropdown.

5. Save your changes

   Click Save to update each product’s settings.

6. Re-post the order

   Return to your order dashboard, select the order that had the error, and click the Post to Xero button. The error should now be resolved.