Tax-Included Item Pricing

Thanks for joining us here, hartbeetfarm. 

Please contact our phone support for QuickBooks Dektop for Mac so they can help with your sales tax. Here's how to reach out to them:

1. Open this link: https://help.quickbooks.intuit.com/en_US/contact.
2. Select QuickBooks Desktop for Mac. 
3. Click Using QuickBooks for Mac.
4. Click Get Phone Number. 

You can always visit us again in the Community if you have other questions. 

No

though asked for repeatedly, QB does not do sales tax included

Could you accomplish this with a Discount Item? (Maybe I haven't thought this through...Rustler you have more experience with this question, so please point out if I've missed something.) See the attached file, along with these descriptions...

Daily Cash Receipts are your total tax-included sales.

Tax-included Discount is a Discount-type Item which adjusts the taxable amount.

Subtotal is optional, but shows what the actual sales-taxable amount is.

Assuming a tax rate of 3.475%, the percentage for the Tax-included Discount Item is calculated this way:   1 - (1 / 1.03475) = 3.3583%

Whenever your tax rate changes you will have to re-figure the discount Item's amount. For a tax rate of 4% for example, the calculation would be: 1 - (1 / 1.04) = 3.84616%

I would set up both Daily Cash Receipts and Tax-included Discount to post to the same Sales (income) account, so the total for that account will represent net taxable sales. But you could have them post to different income accounts if that makes more sense to you.

I thought I had answered on this topic, but not sure if my answer disappeared?  Sorry if this ends up being a duplicate post...

Maybe do this with a Discount-type Item?  (I haven't thought this through...Rustler, you have more experience with this question, so please point out if I'm missing some problem this may cause.)

Set up these Items to use on a Sales Receipt to enter sales (see the attached image as an example):

Daily Cash Receipts - for recording tax-included sales.
Tax-included Discount - for reducing tax-included sales by the sales tax amount.
Subtotal - for showing the net taxable sales amount on the Sales Receipt.

The discount percentage for Tax-included Discount is calculated this way:

1 - (1 / 1.03475) = 3.3583%

Whenever the tax range changes you will have to change this percentage. For a 4% tax rate the calculation would be:

1 - (1 / 1.04) = 3.384616%

I would set up Daily Cash Receipts and Tax-included Discount to both post to the same Sales (income) account, so the account's total will represent net taxable sales. But you might have them post to different income accounts if you prefer.

@FTech

I do something along those lines, what you forgot to account for is income.

income was posted including sales tax, so income has to be reduced by the amount of sales tax you calculate with your discount item

and to get all this done consistently requires that you set up sales receipt as a memorized transaction and only, only use that memorized transaction

> what you forgot to account for is income.

income was posted including sales tax, so income has to be reduced by the amount of sales tax you calculate with your discount item.

No, as I mentioned, Daily Sales and the Tax-included Discount Items both post to the same Income account, so the income posted for this transaction is the net before-tax amount:

$400.00

 -$13.43

======

$386.57

@FTech

you are right, I just missed it I guess, not enough coffee or something

TAX INCLUDED PRICES

Here's how I handle tax-included prices.  This method takes advantage of quickbooks features to correctly pay sales tax.  Click HERE for more info.  I am using quickbooks 2020 for Mac.  Disclaimer: I am not a tax professional, CPA, orquickbooks expert.

Invoices or Sales Receipts

1. Set up taxes, following this link: https://quickbooks.intuit.com/learn-support/en-us/help-article/tax-reports/set-sales-tax-quickbooks-...
2. Within the Invoice or Sales Receipt, instead of entering just the gross sale amount, use this formula instead.*  Let's use a $100 item that includes 10% sales tax.
   
   Amount: Total Sale amount / (1+tax % )= True Product Sales Amount
   100/1.1 = 90.91
   
   
3. Select the 10% sales tax item or group.  Make sure the item is taxable.
   
   
4. Tax will calculate at 10% of the True Product Sales Amount.
   
   
5. The Balance Due adds the True Product Sales Amount + Sales Tax = Gross Sale
   90.91 + 9.09 = 100

* Adapted for quickbooks entry from here: https://www.accountingcoach.com/blog/calculate-sales-tax 

Now, if the Balance due is a penny or so off from the amount the customer paid, here's how to make the adjustment. (copied and edited from the Pay Sales Tax Support document.)

How to adjust the sales tax amount you owe

When you make sales tax adjustments, money will move into or out of your Sales Tax Liability account. You’ll want to adjust your sales tax liability for things like:

• Rounding differences between QuickBooks and your sales tax forms.

Here’s how to adjust your sales tax due:

1. Go to the Vendors menu, and select Sales Tax Adjustment.
2. Enter the adjustment date, sales tax vendor, adjustment account, and any other info.
   
   1. Use an income account if you’re making an adjustment because of a discount/credit or if you’re entering a negative rounding error.
3. Choose if you need to increase or reduce the sales tax, then enter the adjustment amount.
4. Select OK.