Thanks for the prompt reply, @JPS148. I'm here to ensure you can proceed with reconciling your transactions in QuickBooks Online (QBO).

In QBO, you can encounter that error message if you change a standard expense account to a sales tax liability account. Also, you're unable to record a bank transfer to a sales tax liability account. This conversion isn't allowed in the system. What you can do is create a new expense account for recording these payments or expenses related to sales tax.

Another option is to create a journal entry and match it to the bank transaction. Follow these steps to proceed:

1. In the first line, choose a liability account.
2. Enter the exact amount shown on the bank feed transaction under Debits.
3. In the second line, choose the bank account connected to the bank feeds.
4. Enter the same amount above the amount shown on the bank feed transaction under Credits.
5. Once done, select Save.

See this screenshot below as an example:

For the best advice on how you can record it, I recommend consulting your accountant. If you don't have one, no worries you can look for a Pro-Advisor near your area using our Find an Accountant tool.

Once done, you can now categorize and match online bank transactions in QuickBooks Online.

If everything's good with your transactions and accounts, you can now proceed to reconcile an account in QBO.

Please let me know if you have any other questions or concerns besides managing sales tax payments in QBO. I’ll be here to lend a hand. Have a good one!