Sales Tax Issue on Memorized Invoices
I have been a Certified QuickBooks ProAdvisor for over 16 years and I don't think I have seen this problem before. Maybe it was always there? My client has memorized invoices for her customers and they charge sales tax.
This is desktop QuickBooks Pro 2020 version.
When sales tax change notices come from the state, they go into their item list and find their sales tax items and change the cities and counties. But just today we noticed that when a memorized invoice is opened and it has the current date, it brings in the old sales tax rate that no longer exists and doesn't catch the new one for the same sales tax group. Those groups are edited quarterly if the state sales tax newsletter shows changes. I was surprised because now they have to go in and open each memorized invoice and check the sales tax rate. That is a lot of work for probably over 200 customers. Memorized invoices are a great tool, but if you can't count on the sales tax being right, then it can become a liability in time and effort. One client we noticed had the whole year in the system with the wrong rate that was changed a year ago and there is no way to see that because it is lumped in with all the other invoices that have the same sales tax group. His monthly invoice was not large enough for the difference to make enough to be noticed. Just a quirk today that I opened one up and noticed it had the wrong rate.
Has anyone else seen this problem? I think I would have noticed major differences on the sales tax liability report in QuickBooks versus what the online sales tax system for our state calculated but I am not seeing major differences. So is this just a glitch on a few invoices or is this systematic??
But the client is worried enough that they are going to go into each memorized invoice and check them. We checked one other that had a county change and same thing, the memorized invoice when opened with today's date did not catch the updated sales tax group. Had the old one. Again the difference was 50 cents so hard to notice with hundreds of invoices each month on the sales tax liability report. What a headache if after each sales tax change, you have to locate those clients that are affected and go into the memorized invoices, open them up and fix the sales tax rate and then re-memorize them to be ready for the next use. Any help would be appreciated.