ConnectWise Update changes Tax Code Source for Purchase Orders.

Xero Validation Error: The Tax '{Tax Code}' cannot be used with the {AccountType} account.  


Recent changes to ConnectWise (v2016.3) and later an update in v2016.6 change the source of the tax code and the defaults applied to an  to a purchase order.

There is now a setting on the My Company > Purchasing Options, that allows the "Set Tax Code from Vendor" which if not set will default back to the Purchase Order Tax code, regardless of the Vendor Tax Code set.



When the Wise-Sync Tax Code setting for Purchases (Tax code when bought) is set to "Tax Code (Vendor)" then partners will need to ensure that the following option is selected in the ConnectWise > My Company options screen.
  

This changes the expected output to Wise-Sync, by replacing the expected Vendor Tax Code, with the Purchase Order Tax Code selected, even if Purchase Order tax is not set on the Purchase Order.

Previously this was (and should be) the Tax Code for the Vendor, set on the Vendor's Contact > Finance Settings.

>> Need screenshot of Setting in v2016.6 (my Company) showing the selected item

For Example:
On the below examples you can see that the tax code for Purchase Order: Tax Code is showing as GST on Income.  


Even though the tax on the Vendor is actually set to 'GST on Expense'.


In the example, previously the Vendor Tax Code was the tax code used by Wise-Sync where in v2016.6. the default tax code on the Purchase Order is being set by the Customer Tax Code, and replaced by ConnectWise at the vendor level, which is unexpected.

>> Screenshot of PO with incorrect tax code. 

In this case the Tax Code set on the PO is set to "GST on Income" although the Purcahse Order itself is set to Not "Tax Purchase Order", ConnectWIse is defaulting the Tax Code for even the Vendor ot the Purchase Order if the option is not set in the My Company Screen.