When exporting an invoice with a mismatch between the type of ledger account and the tax code used (e.g. expense account and sales tax code), you will get a variation of the "The TaxType code “ ” cannot be used with account code ‘####’" export error.
The export error contains the backend name of the tax code and the numerical code of the ledger account.
For example, exporting a bill with a '325 - Direct Expenses' direct cost account and a '20% (VAT on Income)' tax code, will give you the error variation: 'The TaxType code 'OUTPUT2' cannot be used with account code '325'.'
How to fix "The TaxType code “ ” cannot be used with account code ‘####’"?
To fix the error change the tax code in Datamolino to a tax code appropriate for the ledger account type (e.g. changing the tax code to '20% (VAT on Expenses)' in our example above).
If the ledger account is not appropriate for the type of transaction, update it instead.
Once you update the coding, click on 'Dismiss in the error message and export the document.
TIP: If this doesn't help, please check your Chart of Accounts and Tax codes in Xero and update their type. Ledger account and tax code must be aligned.