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Why do I get a "Zip code is not recognized" error on the transaction UI in QuickBooks Online?

Overview

I am getting this error: "Zip code is not recognized" on the transaction UI when trying to calculate tax.

Environment

QuickBooks Online

Resolution

Make the address-related changes only on the customer card of QuickBooks Online, and use the same address on the transaction UI.

This issue sometimes occurs when the address is modified directly on the transaction UI.

This is a known limitation from Intuit. It does not parse address information properly if the address-related changes are done on the transaction UI.