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QuickBooks - Error code:2500; Third-party request failed

Problem Statement

I see an error when syncing invoices to QuickBooks: "Invalid Reference Id: Categories cannot be used in transactions." What does this mean and how do I fix it?

Solution

This error occurs when QuickBooks has a line item of type CATEGORY. The QuickBooks Discount item is typically of type CATEGORY, which cannot be used in transactions. Invoices with discount line items are most likely to trigger this error.

You may come across this error only in invoices that have a discount line item because the QuickBooks Discount item is of type "CATEGORY".

To resolve this, contact QuickBooks support to change the discount item type from CATEGORY to SERVICE in your QuickBooks account.

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