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Manage Sales Tax in Point of Sale when running Financial Exchange

SOLVEDby QuickBooks2Updated 1 year ago

Sales Tax plays a vital role in a business, which is why we need to track it properly. QuickBooks Point of Sale helps you collect taxes for every taxable sales and sends the data to your QuickBooks Desktop.

For full instructions on how to set up your sales tax in Point of Sale, go to Set up sales tax in QuickBooks Desktop Point of Sale.

What if I'm selling my items/services to a different state that has different Sales Tax rates?

You need to create different tax locations. Under Tax Locations, edit the Tax Code with the corresponding rate of that state. Refer to Set up sales tax in QuickBooks Desktop Point of Sale  for full instructions on adding tax locations.

Track Payables for each Sales Tax when using Multi-rate Tax

To check how much you owe from each sales tax agencies when using Multi-rate Tax, pull up Sales Tax Liability report in QuickBooks Desktop or Tax Detail report in Point of Sale.

QuickBooks Desktop Point of SaleQuickBooks Desktop
Reports menu > Sales > Tax DetailVendors menu > Sales Tax > Sales Tax Liability

Sales Tax Detail report in Point of Sale doesn't match with Sales Tax Liability report in QuickBooks Desktop

Possible reasons:

  • There are sales that were entered in QuickBooks Desktop that was not in Point of Sale or vice-versa
  • Sales Tax Item/Group has been inaccurately mapped
  • Dates were filtered incorrectly
  • There are filters in the reports (Accruals or Cash)
  • Possible Data Damage

Solution 1. Clear the filters in the report

QuickBooks Desktop Point of Sale

  1. From the Reports menu, go to Sales then choose Tax Detail.
  2. Click Modify, then Filter Data.
  3. Make sure the dates are correct and no information is excluded.
  4. (If changes were made) Click Save, then Run.

QuickBooks Desktop

  1. From the Vendors menu, go to Sales Tax, then select Sales Tax Liability.
  2. Click Customize Report.
  3. Check the Filters and Dates. Make sure they are the same with Point of Sale report dates.
  4. (If changes were made) Click Refresh.

Solution 2. Compare transaction in the reports

  1. On the Sales Tax Liability report, double-click on the Sales Tax collected column of Sales tax Item that doesn't match.
  2. Compare the transactions inside the reports.
    Note:  From here you can identify what transactions causes the discrepancy.
  3. You can double-click on the Invoice or Sales Receipt to further check the transactions.
  4. Re-enter transactions that are not in Point of Sale.
    • If entering transactions in POS that already exist in QuickBooks Desktop, mark the document as already sent to QuickBooks Desktop.
      (I want to... > Show Financial Detail > Mark this document as successfully sent)
    • If there are transactions that are not in QuickBooks Point of Sale, check Financial Exchange activity logs for Errors when sending the files.

Solution 3. Check the mapping of Sales Tax

  1. From the File menu, go to Preferences then choose Company.
  2. On the left pane, select Sales Tax.
  3. Click on Edit Tax Code for the tax code in which amount doesn't match with the sales tax item in QuickBooks Desktop.
  4. Select Next and check the QuickBooks Tax Info mapping.
    Note: Make sure that Sales tax code is mapped with the correct Sales tax Item in QuickBooks Desktop.

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