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Error Box pops when trying to create a Credit Memo in QuickBooks Enterprise 13.0

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Error Box pops when trying to create a Credit Memo

When trying to create a Credit Memo from an invoice or from the Customer menu, you receive a warning that says "Error."

Why is this happening

QuickBooks will show this error when trying to create a Credit Memo from the invoice screen because the invoice includes a sales tax item, however sales tax has been turned off in the file.

How to fix it

To properly create the Credit Memo, turn on Sales Tax, create the Credit Memo and then turn Sales Tax off.

  1. Turn Sales Tax on in the company file:
    1. On the top menu bar, click on Edit.
    2. Click on Preferences.
    3. Click on Sales Tax.
    4. Click the Company Preferences tab.
    5. For 'Do you charge sales tax?', click on Yes.
  2. Create the Credit Memo.
  3. Turn Sales Tax back on in the company file by following the directions in Step 1 and selecting "No" for 'Do you charge sales tax?'.

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