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K
kogexx
May 3, 2024
Question

The new invoice provides for only one sales tax rate, attached to the invoice address. How do we deal with two stores in two different sales tax jurisdictions?

  • May 3, 2024
  • 1 reply
  • 0 views
Do our sales people have to stop for each invoice and edit the address printed at the top of the page?  This is grossly inconvenient.

1 reply

J
JoanaC
May 3, 2024

Let me share more information about sales tax, @kogexx.

 

By default, QuickBooks Online calculates the sales tax based on the location of the sale, customer's exempt status, and item tax category. Given that you operate two stores in different jurisdictions, we will need to manually alter the address each time a sale is made. This ensures that the program can accurately calculate your sales tax.

 
Here's how:
  1. Click the + New button.
  2. Choose Invoice, and pick a customer.
  3. Enter the product/service items and other necessary info.
  4. Enter the appropriate store address in the Location of sale field.
  5. Click the See the math link and review the tax computation.
  6. Hit Save and Close.
 
While QBO does have a location tracking feature to help categorize data from various locations, it does not influence the sales tax calculations. I understand that this process can be time-consuming.
 
I'll take note of this to help improve your experience.
 
Moreover, let me share these articles that can help you manage your sales tax:

 

 

Let me know if you still have questions about your sales tax. Have a great day. 

K
kogexxAuthor
May 5, 2024

Thank you for your very clear response but it doesn't answer my question.  How can QB do what our company needs it to do to automatically calculate the correct sales tax?  We run small stores in two counties.  95% of our sales are by SR.  5% are by Invoice.  People walk into the stores and buy things.  We do not ship anything, ever.  All of the invoices and SR's default to the corporate address, which is OK for store #1.  For store #2 however, on invoices, our salespeople will now need to click on the calculation information and then on override.  This is bad enough.  But "override" is not just a field, they then will have to enter the store #2 address as a full new "shipping" address for each Invoice and we never ship anything.  For SR's for store #2, they now have to manually change the location in the upper right hand corner or the sales tax rate on each sale.  We don't have time for this.   Please advise how  QB can calculate sales tax for us automatically.    Thanks.

A
AbegailS_
May 5, 2024

Thanks for getting back to us, @kogexx. 

 

Proper tracking of sales and taxes is essential for maintaining accurate financial records. 

 

I'll guide you through the manual adjustments required for your two stores' sales tax calculations in QuickBooks and how to automate these calculations. 

 

You can turn off the Ship To address option in your first scenario to have the sales tax calculated based on the default company address for invoices. This will prevent the need to enter a separate shipping address for each invoice. Here's how you can do it:

 

  1. Go to the +New button and choose Invoice.
  2. Click the Customization dropdown and turn off the Ship to option. 
  3. Hit Save. 

 

By turning off the Ship To address option, QuickBooks will automatically calculate the sales tax based on the default company address, eliminating the need for manual adjustments.

 

On the other hand, to avoid manually changing the sales tax rate for sales receipts (SRs) in store #2, you can create a custom tax rate that applies specifically to that store's shipping address. Here's how you can set it up: 

 

  1. Go to Taxes, then Sales tax.
  2. Select Sales tax settings.
  3. In the Custom rates section, select Add rate.
  4. Choose Single or Combined.
  5. Enter the Name of the custom rate.
  6. Select the Agency you file payments to. 
  7. Click the Rate, then Save.

 

After setting up your custom rates, here’s how to use them on your next invoice or sales receipt. 

 

  1. Go to Invoice.
  2. Under subtotal, click See the math. 
  3. Select the sales tax rate and choose from the dropdown button. 
  4. Click Save and Close.

 

See this article for more details: Use custom rates to manually calculate taxes on invoices or receipts in QuickBooks Online

 

Additionally, you might want to explore this article that guides how to apply discounts to invoices and sales receipts: Add a discount to an invoice or sales receipt in QuickBooks Online.

 

If you require more information about sales tax, feel free to leave a reply below. Have a nice day.

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