QuickBooks Online - FAQ

For customers using QBO’s automated sales tax (AST):

• CereTax integration will override AST tax calculation

• Updated tax amount can be seen after closing and re-opening the document  

• For CereTax’s tax amount to ‘stick’ to the document

            at least 1 line on the doc must be marked Tax = true

                       A $0 tax amount will stick in QB if at least 1 line is taxable

                        I believe this is because QB needs an AST jurisdiction to hang the tax amount to

            the state where the transaction is occurring needs to be set-up within AST

• Tax amounts will be assigned to each state’s chart of accounts that QB automatically creates when setting up AST

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• Quickbooks batch transactions create invoices does not always send all invoices to CT. In some cases, it was overriding it’s own tax rate with 9.5%

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Credit Memos

• When CT sends back the tax amount to QB, QB has already generated a payment record for the credit memo, applying it to the customer’s next invoice

• This results in the credit memo payment not including tax and a balance getting created on the credit memo for the tax amount. 

• How to handle:

             This setting can be turned off. When turned off, our tax amount is added to the credit memo balance

             Guidance will be to turn this setting off when creating credit memos so our tax can be calculated and added to the balance before credit memo is applied to the                 customer.

            This would be consistent w/ how Avalara is handling this

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Additional Notes regarding the line item tax checkbox:

that is a field used by QuickBooks’ native tax functionality, I intentionally did not incorporate it into the integration because 1) we should be processing every line in order to report revenue correctly and 2) taxability should be driven by our ps codes.

Even QuickBooks will ignore that field if you have their automated sales tax turned on. Otherwise, it uses that field to determine which lines to apply the flat rate on the invoice to.

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