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
I had to open Settings -> Language & Frameworks -> Scala Compiler Server
Settings -> Language & Frameworks -> Scala Compiler Server
Then set the JVM SDK there, which was .
This was in addition to setting the Project SDK in Project Structure -> Project.
Project Structure -> Project
See the screenshot here.