What does "Sales Tax Entity/Use Code is not set..." mean?

"Sales Tax Entity/Use Code is not set..."

When using AvaTax to calculate Sales Tax, users may receive a message when saving a Sales Order:

"Sales Tax Entity/Use Code is not set for customer type "somecustomertype"

This message may be returned if the Customer entered on the Sales Order has a Tax Exemption Code set on the Customer Record, but the related Customer Type has not been configured to use an AvaTax Entity Use Code.

Please review steps 1 through 3 in the Customer Type section of the AvaTax customer configuration article on how to update your customer types with the proper AvaTax Entity Use code.