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apmessner
apmessner
January 4, 2021
Question

Location and Location of Sale

  • January 4, 2021
  • 2 replies
  • 0 views

I am working with a client who operates a retail business in three different locations. Each location has a different sales tax rate. The locations have all been set up with their correct addresses. When he creates an invoice and selects a Location from the Location drop-down box, the Location of sale field just below the Location field does not update. The Location of sale field always has the main business address in it and has to be changed manually. This also means that the sales tax is computed based on the main business address and not the actual location of the sale.

 

For example, in the attached screenshot, the Location field shows Mt. Vernon, but the Location of sale field shows the company's Mansfield address.

 

Is this a known issue with QBO, or is the sales tax calculation feature supposed to work this way, or am I missing some kind of setting somewhere that will make this work the way I think it should?

 

(I know I can work around this by manually creating different tax rates for each location. That's where I'm going next if the automatic calculation doesn't work.)

 

Thanks!

    2 replies

    S
    SarahannC
    January 4, 2021

    Hello there, apmessner.

     

    I can see how relevant and beneficial to update the Location of sale field when selecting a new location within the invoice. Yes, you're correct that the sales tax is computed based on the address showing on the transaction, where you sell and where you ship.

     

    For now, you can manually create different tax rates for each location in the program. To learn more about recent improvements, news, and product enhancement, you can visit our blog website. 

     

    Also, you may want to check these articles for additional information about the automated sales tax in QBO:

     

     

    Let me know if you have other concerns with QuickBooks. Keep safe always.

    apmessner
    apmessnerAuthor
    January 4, 2021

    Thanks for your response.

     

    You said,

     

    Yes, you're correct that the sales tax is computed based on the address showing on the transaction.

    This isn't true, though. Sales tax is only computed based on the company's address as specified in company settings. This is a completely useless feature - if you're going to roll out an automated sales tax feature, it should compute sales tax based on the location of the sale, not the address in the company profile.

     

    It's also misleading to roll out automated sales tax and only use California - which has dozens of tax agencies already set up and ready to go - in your training and promotional materials, when not all of the other states are ready to go. This feels like a beta test of a new feature rather than something that is fully formed. I've come to expect better from Intuit, but you guys kinda whiffed on this one.

     

    It's also super frustrating that now that I've turned on automated sales tax, I can't turn it off.

      Fiat Lux - ASIA
      Fiat Lux - ASIA
      January 5, 2021

      @apmessner 

      Explore this AST Filing & Reporting app as a workaround.

      https:// taxjar.grsm.io/mytax

       

      Otherwise you may open a new blank QBO account and migrate data from the old one

      https:// quickbooks.grsm.io/US

      https:// quickbooks.grsm.io/us- promo 

       

      S
      Shay11
      June 26, 2023

      Following up on this issue on Jun 2023

      If anyone found a solution please update

      had over 3 hours with QB technician and managers and they said its a bug in the software and than said this is how it is and no fix are scheduled

       

      Please update

        K
        Kurt_M
        June 26, 2023

        Thanks for getting back here in the thread, @Shay11.

         

        I understand the urgency of this matter, and upon checking here on our system, the option is still unavailable. Know that this isn't the experience we'd want you to have and that we want to help you resolve this. I recommend sending a feature suggestion to our Product Development Team. They'll evaluate your recommendation and then consider it for future program updates. I'll write down the steps:

         

        1. Access your QuickBooks Online company.
        2. On the top right-corner, click the Gear icon.
        3. Select Feedback and then enter your comments or product suggestions.
        4. Once ready, click Next to submit feedback.

         

        Additionally, here's an article to ensure your data stay accurate inside the program: Run reports in QuickBooks Online.

         

        @Shay11, please don't hesitate to post here again if you have any additional QuickBooks-related queries. The Community team is open 24/7 and is ready to assist you. Take care!

        A
        Arif3
        July 27, 2023

        I'm buying new business and planning to use Quickbooks.  Am I understanding correctly that QB cannot calculate sales tax correctly for services provided outside of a primary business address?  We do work across 2 states and about 50 tax jurisdictions.  I'm expecting for QB to calculate accurate sales tax based on the location that the work is completed. Is this software not able to handle that? 

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