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Karenb7
October 22, 2024
Question

Issue with Sales Tax. Invoice & PDF creation, Sales Tax correct. Save, and later view & sales tax has doubled. Click on "see math" it resolves. Glitch?

  • October 22, 2024
  • 2 replies
  • 0 views
Is anyone seeing this issue?  I create a PO to purchase the product, then an associated Bill to pay the vendor for the product purchased and drop shipped to my customer.  I then create an invoice to charge the customer for the product drop shipped from the vendor.  Tax is correct upon entry, and I save and send the PDF.  Next time I check (could be an hour later, or next day) my invoice amount is larger and upon review the sales tax has "doubled".  I click on "see math" right below the sales tax amount and it reverts (it did that the last few days)  Now when I click on "See math"  It asks me if I want to override the "bogus" amount and then it puts back the sales tax to what it was originally. 

2 replies

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KimAnnVA
October 22, 2024

Have you tried checking your sales tax tab to see which ones are active or checking your default template on your invoice.

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LeizylM
October 22, 2024

I recognize your concern about the discrepancies in sales tax calculations and the need to override within QuickBooks Online (QBO), Karen. I'm here to ensure the computations are accurate. Let me explain why we'll have to override in such cases.

 

QuickBooks Online (QBO) is designed to automatically calculate sales tax based on the information you entered. However, there can be problems that cause differences in the amount. These issues may come from rounding, changes in tax rates, or specific situations in your business that require you to make manual corrections.

 

When you notice differences in sales tax amounts, manual checks are needed to fix them. Overriding helps users correct these issues quickly and ensure the calculations match the correct tax rules.

 

Additionally, QuickBooks automatically calculates the total tax rate for each sale based on the following:

 

  • Your customer's tax-exempt status
  • Where you sell and where you ship
  • What you sell

 

For more details, see this link: Learn how QuickBooks Online calculates sales tax.

 

You can always count on me if you need additional assistance handling invoice sales tax in the program. Leave your comment below by clicking the Reply button.

S
Savis
October 27, 2024

The computations are not accurate though. For instance, when a service line item is entered with a non-taxable designation (it is non-taxable in our state), the calculations "add-in" a portion of the amount of the line. Not a percentage. Just a random amount. Then, it taxes that amount. When I select to see the math, the line item is omitted. This is broken and frustrating. Also, your help line hasn't contacted me re: this issue. So, no, the computations are NOT accurate.

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GenmarieM
October 27, 2024

I understand your concern about calculations impacting critical areas like taxes, @Savis. I'm here to route you to the team that will help you resolve this matter.

 

Although you contacted Customer Support, I recommend reaching out to them once more for a comprehensive account examination. They can identify the problem's cause and initiate an investigation if needed for an effective resolution

 

Here’s how to contact them:

 

  1. Log into your QBO account.
  2. At the right upper screen of your QBO account, click Help icon.
  3. Go to Search, then enter Contact Support.
  4. Click on the Contact Support tab.
  5. Choose whether you want to have a Chat with an expert or get a Callback.

 

Additionally, if you want to make your items and customers as tax-exempt, feel free to visit this article for reference: Understand and set up sales tax-exemptions in QuickBooks Online.

 

Feel free to tag me on this thread if you have questions about tax calculations and other banking concerns. I'm always here to help.

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