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In Dynamics AX, what is a document status error?

Overview

Why is this error message, “Doc status error”, generated from Avatax during AX Invoice posting?

Environment

Microsoft Dynamics AX 2012 R3 CU8 (Applicable to all other supportive versions of AX)

Resolution

  • Make sure that Avatax Production account is not configured from both AX Production and AX Test or Development account.
  • Go To Avatax menu in AX
    • Go to  Set up > Configuration 
    • Make sure you are using the correct Avatax credentials.