How to stop QB Desktop 2019 from calculating sales tax on invoices imported via IIF file

Greetings, @jaytaplin1. 

It's great to see a new face here in the Community. I appreciate you coming to us with your question about importing invoice from an external software. 

 To receive the best answer to your question, I recommend contacting the external software that you're using. QuickBooks is designed to take in the information you import, the way it was from the other software. You'll need to get in touch with them to adjust it correctly into QuickBooks. 

In the meantime, here are a few articles that can be helpful for you and your business: 

• Export, import, and edit IIF file

• QuickBooks Blog

I hope these details helped. Let me know how it goes. Should you need any further information, don't hesitate to ask. I'm always here to lend a helping hand. Wishing you and your business continued success!

Hi Candice -

Thank you for your reply.  I wrote the system that generates the file.  The file is not the problem - it imports fine.  The problem is that QB is changing the sales tax amount when it doesn't equal the total tax for the taxable items.  For example (sales tax is 5% for these examples):

• Invoice #1 - Total = $2,100.00
  • Line item 1:
    • $2,000
    • Taxable (all $2,000 is taxable)
  • Line item 2 (sales tax)
    • $100.00
  • Import result:
    • QuickBooks imports the invoice exactly as the data in the file states
• Invoice #2 - Total = $1,040.00 
  • Line item 1:
    • $1000
    • Taxable (but only $800 of the $1000 is taxable because we can't apply tax on delivery charges)
  • Line item 2 (sales tax):
    • $40
  • Import result
    • QuickBooks changes the sales tax to $50.00 and imports invoice
    • I am aware that I can solve this by creating two line items, a taxable one for $800 and an non-taxable one for $200

Is there a way to turn the auto-adjustment of the sales tax off when importing invoice IIF files?

Jay

Hi Candice -

Thank you for your reply.  I wrote the system that generates the file.  The file is not the problem - it imports fine.  The problem is that QB is changing the sales tax amount when it doesn't equal the total tax for the taxable items.  For example (sales tax is 5% for these examples):

• Invoice #1 - Total = $2,100.00
  • Line item 1:
    • $2,000
    • Taxable (all $2,000 is taxable)
  • Line item 2 (sales tax)
    • $100.00
  • Import result:
    • QuickBooks imports the invoice exactly as the data in the file states
• Invoice #2 - Total = $1,040.00 
  • Line item 1:
    • $1000
    • Taxable (but only $800 of the $1000 is taxable because we can't apply tax on delivery charges)
  • Line item 2 (sales tax):
    • $40
  • Import result
    • QuickBooks changes the sales tax to $50.00 and imports invoice
    • I am aware that I can solve this by creating two line items, a taxable one for $800 and an non-taxable one for $200

Is there a way to turn the auto-adjustment of the sales tax off when importing invoice IIF files?

Jay

Hi @jaytaplin1,

Thank you for your prompt reply, as well as for sharing additional details on your concern about imported invoices in QuickBooks Desktop (QBDT).

As my colleague @Candice C stated above, QBDT takes the information on your IIF file as-is. I suggest you proceed as you mentioned, which is to create another line item for the amount that's non-taxable. 

Speaking of IIF files, you can also take a look at this article: Tasks you can do with IIF files. It has the steps on how you can edit your lists in bulk, among others.

Post a reply if you have other questions about the IIF import process in QBDT. I'll be around to help you out. 

Hi Ryan -

Thank you for your reply.  I will go ahead and split the line items out as necessary.  Perhaps I'm misunderstanding, but QB does not import the data "as-is".  It is changing the sales tax amount because it thinks the file contains the wrong amount on some of the records (which, technically, it does, though it is on purpose).  I just want QB not to change my data - trust that the input is correct.  I make this point only because both you and Candice said that QB imports the data as-is, but it does not - it changes it by calculating the sales tax.

Thanks!

Jay

Looks like QBs requires a separate sales tax item for every different sales tax rate.

For instance, Illinois lets taxing authorities other than a state add sales tax to products and services.
So each taxing authority (county, municipality, school district) that adds a sales tax has to have a separate sales tax item in QB.

Our custom system uses "Avalara" APIs to get the sales tax rates so the custom system can then create the invoice, then we use an IIF to import the invoice to QB.

When you build your invoice IIF from your custom system you have to add a separate sales tax item to the invoice for each different tax rate.  So your custom system will have to create another IIF to create any new sales tax items that will need to be imported BEFORE the IIF containing your invoice.  And then you'll need to monitor those sales tax items for rate changes or expiration and create update IIF files to handle such.

Warning!!!!  If you use the same item with different sales tax rates in the IIF, QB will import it without error, your journal entries will be perfect, HOWEVER when you display your invoice, QB only shows the first sales tax record with that unique sales tax item.

OR!!!  You can build a custom sales tax group for each customer and simply use that item on a single aggregate sales tax line in your IIF.