I am using IntelliJ IDEA 13.1.4 and also tried the latest release 14.
Running SBT I get the following error:
Error:Cannot determine Java VM executable in
Another way to set JDK is from your current module/project settings (for your current project)
PickOpen Module Settings from project context menu (or default hit F4), then from left tab select Project and point correct Project SDK on dropdown.
Open Module Settings
Project
Project SDK