How QuickBooks handles tax when integrating with SAGE

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Issue:

This article describes how tax is handled when importing order forms from SAGE Workplace to QuickBooks.

Solution:

For QuickBooks Desktop:

1. If the customer does not already exist, the customer will be created in QuickBooks as part of the import.  If the form being imported has the "tax exempt" box checked, then the customer will be set as tax-exempt.  Otherwise, the customer will be set as taxable.  Tax codes (taxable or tax exempt) for QuickBooks Desktop are configured in the SAGE Workplace Windows app options area under QuickBooks.

2. When the form is imported, if the "tax exempt" box is checked, then the line items will be set as non-taxable.  Otherwise they will be set as taxable.

3. Tax is calculated according to the setup in QuickBooks.  Note that this may differ from the tax shown on the form if your tax tables are set differently in SAGE and QuickBooks.  In other words, SAGE only tells QuickBooks whether or not to charge tax.  The tax computation is handled within QuickBooks independently from SAGE.

For QuickBooks Online:

1. If the customer does not already exist, the customer will be created in QuickBooks as part of the import.  If the form being imported has the "tax exempt" box checked, then the customer will be set as tax-exempt.  Otherwise, the customer will be set as taxable.

2. When the form is imported, if the "tax exempt" box is checked, then the line items will be set as non-taxable.  Otherwise they will be set as taxable.

3. Tax table items and tax amount is calculated in QuickBooks Online.

For any version of QuickBooks, best practice is to configure your tax settings the same way in SAGE and QuickBooks.  In that scenario, the tax on the QuickBooks form should match the tax on the SAGE side in all cases.

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