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Peter Myres
November 29, 2021
Question

calculating sales tax

  • November 29, 2021
  • 1 reply
  • 0 views

I use QuickBooks Mac Desktop. When creating invoices, the Invoice form will not calculate the sales tax, even though the customer is marked as taxable. The correct sales tax description and amount appear at the bottom of the invoice but it is not calculated into the total amount being charged.

1 reply

AlexV
AlexV
November 29, 2021

Hello Peter Myres!

 

I'm here to help in resolving this sales tax calculation issue.

 

QuickBooks Desktop for Mac has an option to choose how sales tax accrues. You'll want to review your sales tax setup by following these steps:

  1. Go to the QuickBooks menu, then select Preferences.
  2. Click Sales tax, then Customers are charged sales tax.
  3. Select if you pay sales tax Monthly, Quarterly, or Annually.
  4. Choose how sales tax accrues. Select either As of invoice date or Upon receipt of payment.
  5. Follow the on-screen steps, then save it.

 

Note that the As of invoice date is for accrual basis while the Upon receipt of payment is for cash basis. You'll want to choose the As of invoice date if you want the sales tax to calculate and added to the invoice.

 

If the same thing happens, you can run the Verify and Rebuild Data tool to fix issues caused by damaged data.

 

You can check this link: Set up sales tax in QuickBooks Desktop for Mac. This will show you not only how to set up sales tax but also how to collect, review sales tax reports, and pay them.

 

Keep your posts coming if you need more assistance with sales taxes. Take care!

P
Peter MyresAuthor
December 1, 2021

Thank you for these suggestions. I have followed them all, and also completed the Rebuild Data function, but the problem remains.  The sales tax rate appears on the invoices but is not calculated into the invoice total.  See the screenshot attached.  Do you have other suggestions?

R
Rasa-LilaM
December 1, 2021

Good day, Peter Myres.


I appreciate you for following the solutions shared by my peer and letting us know the result. Let’s try performing another one to resolve your sales tax rate concern.


We’ll have to recreate the same sales tax rate and use it on the invoice. This is to check if the item is damaged. Here’s an article that will walk you through the process: Set up sales tax in QuickBooks Desktop for Mac.


After setting up the new sales tax rate, let’s create an invoice and add it from there. If it shows that the sales rate is calculating, we’ll have to merge it to the damaged one.

 

  1. Go to the List menu at the top bar and choose Chart of Accounts.
  2. Copy the sales tax rate information you want to keep.
  3. Then select the old sales tax rate and click the Pencil icon to edit it.
  4. Paste the name you copied and press the OK button.
  5. Tap Yes to merge the sales tax rates.

 

Once done, you can now use the new rate for your invoices. However, if none of these suggestions work, I recommend contacting our Technical Support Team. They have extra tools to check why the item is not calculating on the sales entry and fix it from there.


The following resource will help troubleshoot issues or unexpected results you may encounter while managing your sales tax in QuickBooks: How to resolve common sales tax issues. Since the solutions are scenario-based, I recommend choosing the one that fits your situation.


You can also bookmark this link in your browser for future reference. It contains topics that will guide you on how to handle any tax-related concerns or activities in QuickBooks Desktop for Mac.


Drop a comment below if you still have questions about sales taxes. I’ll be around to answer them for you. Have a great rest of your day.

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