If you receive the error message below when synchronizing with QuickBooks, this may be caused by setting the Branch Invoice Discount GL Account in Configuration Manager to the wrong type of account.
Could not create discount item: There is an invalid reference to QuickBooks Account “Some Number” in the Items. QuickBooks error message: You cannot associate an item with Sales Tax Payable, Undeposited Funds, accounts receivable, accounts payable, or non-posting accounts. Usually, if you sell the item, use an income account; if you buy it, use an expense account.
To resolve this type of error, open Configuration Manager -> Customer -> Branch. Change the ‘Invoice Dis GL Account’ to a non-A/R account or one of the accounts listed in the error message. An example of the GL Account used in our Demo Company would be an Income Accounts such as Cash Discounts or an Invoice Discounts Account.