How to resolve the error, "The on-account amount is incorrect," when posting a transaction in Microsoft Dynamics GP?

Overview

When posting a transaction, you receive the error message below:

"The on-account amount is incorrect"

Environment

Dynamics GP

Resolution

• Review the transaction and make sure the tax listed in the on-account account field matches the Sales Tax field
  • If you are doing a Credit memo, make sure the credit memo on-account amount matches the Tax amount listed on the original invoice
• If the issue persists, un-apply the credit memo from the invoice so it's no longer linked. The transaction should post without any errors.
• *Note* Due to GP limitations, you cannot processes one credit memo for two separate invoices