An item in this batch is marked as non taxable (Invoices)

Error

An item in this batch is marked as non taxable. - Refer to Item: 'XXXX'. If this is non taxable item please add item code to the Non Taxable Items list in your company config.

Applies to: ConnectWise, Wise-Sync (Company settings)

How can this happen?

An item in this batch is marked as non-taxable, and your Tax exempt compliance level is set to "Halt Batch"

Setting this to "Halt Batch" applies to items that are not marked as "Taxable" in ConnectWise. This is a very strict compliance that all items must have the "Taxable" flag set. Read more about it here: Wise-Sync Company Settings (ConnectWise)

Solution

Depending on your preference, there are multiple ways to resolve this:

SOLUTION 1: Mark the product as "Taxable":

Advisable if the product is meant to be taxable only on the specific invoice. Steps below:

  1. In the ConnectWise invoice, click on Products
  2. Lookup the product you're going to update, then put a mark on the tickbox
  3. Click the Actions dropdown button
  4. Click on the Update Taxable Flag
  5. Select Yes
  6. SAVE
  7. Proceed in closing and syncing the invoice
SOLUTION 2: Set the invoice to "Tax Exempt":

Tax will still calculate, but at 0% (since Tax Exempt is 0% tax). This way, the entire invoice will be exempt from tax regardless whether the products are taxable or not.

SOLUTION 3: Retain the setting and add the product/s to the "Non Taxable Items" list under your Company settings:

This is advisable if you want to keep the restriction as is, but keep the product/s exempted from Sales Tax. Steps below:

  1. In your Wise-Sync Company settings, click Tax Codes
  2. Under the "Tax exempt compliance level" option, click the Non Taxable Items button
  3. Enter the ConnectWise ProductID that you want to be tax-exempt.
  4. Click Add Item Mapping
  5. SAVE

SOLUTION 4: Set your Tax Compliance to "Warning"

If you sync an invoice and Wise-Sync detects that you have a non-taxable product, this setting will throw you a warning, rather than an error, and the sync will still push through.

(Note: If you set this to "None", a normal successful sync message will display instead. Meaning, you will not be notified if there are any products that have misconfigured tax settings).Steps below:

  1. In your Wise-Sync Company settings, click Tax Codes
  2. Under the "Tax exempt compliance level" option, select Warning on the dropdown
  3. SAVE
S
Sam is the author of this solution article.

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