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kreiss
Level 1

Sales Tax and Sales Discount Defaults

Hello,

 

I have a client who's invoice/estimate form defaults to calculate sales tax on the pre-discount amount (see below).  Folks creating estimates and invoices with a discount need to remember to hit the highlighted toggle below to ensure taxes calculate on the NET price (after discounts), not the pre-discount price.

 

QB.PNG

In trying to make this as easy as possible for the users, is there a way to set the discount percent field to be placed ABOVE the Sales Tax field by default?   Counting on users to do the right thing every time is not preferred.

 

Thanks,

 

Kerry

Solved
Best answer April 11, 2019

Best Answers
Alessandra_B
QuickBooks Team

Sales Tax and Sales Discount Defaults

Thank you for posting here in the Community, @kreiss.

 

Currently, you have to manually toggle the switch button for your sales tax and discount percentage.

 

The switch button gives users the freedom to choose if they want to apply the discount to the transaction before the sales tax. Or deduct the sales tax from the transaction before applying the discount.

 

But it's a nice thing you noticed the importance of this button. I'll be sure to pass this along to our engineers to let them know of your suggestion.

 

Feel free to leave a comment below if you have any other concerns.

View solution in original post

37 Comments
Alessandra_B
QuickBooks Team

Sales Tax and Sales Discount Defaults

Thank you for posting here in the Community, @kreiss.

 

Currently, you have to manually toggle the switch button for your sales tax and discount percentage.

 

The switch button gives users the freedom to choose if they want to apply the discount to the transaction before the sales tax. Or deduct the sales tax from the transaction before applying the discount.

 

But it's a nice thing you noticed the importance of this button. I'll be sure to pass this along to our engineers to let them know of your suggestion.

 

Feel free to leave a comment below if you have any other concerns.

View solution in original post

NOTHAPPY
Level 2

Sales Tax and Sales Discount Defaults

Yet another work around.

 

My invoices are imported from my CRM. When they are sent to QBO, they are in the correct order but when they get to QBO, the discount/tax are reversed.

AlexV
QuickBooks Team

Sales Tax and Sales Discount Defaults

Thanks for joining the thread, NOTHAPPY.

 

For now, you can follow the workaround provided above to toggle the switch button so that sales tax and the discount will be shown correctly.

 

As what previously mentioned, this has been forwarded to our developers.

 

Feel free to post in the Community if you have other questions. Have a great day!

pbrink231
Level 1

Sales Tax and Sales Discount Defaults

So far 100% of our invoices have the discount before sales tax. 

 

I think this would be the default case for most people using quickbooks since the only time the discount is done after sales tax is if they are receiving a refund from a vendor or manufacturer after the sale.

 

It would be really nice to have a simple toggle to change the default for when a sales order is created.

 

In my case changing it to true, when the user creates an invoice online it would automatically have the discount before sales tax line item instead of the other way currently because the company default was set to true.

Charies_M
Moderator

Sales Tax and Sales Discount Defaults

Hello there, pbrink231.

 

Thanks for sharing your thoughts with us. Allow me to join this thread and share some insights on how sales tax discounts works in QuickBooks Online (QBO).

 

I see your point here and I appreciate you for sharing your preference about the sales tax discounts in QBO. I'd be more than happy to bring this up with the team. 

 

For now, you can use the recommendation provided by my colleague above to toggle the switch button when creating estimates or invoices.

 

I've got this article handy for your reference about managing sales tax in QuickBooks Online.

 

Don't hesitate to reach back to me if there's anything else you need. I'd be more than happy to help you out.

pbrink231
Level 1

Sales Tax and Sales Discount Defaults

Thank you for the reply Charies_M


I currently do use the toggle, its more of an issue of another thing to remember to do for both me and my users.


The easiest place to put the toggle would probably be:

Settings -> Account and Settings -> Sales -> Sales form content

The setting name would be "Apply Tax After Discount" with a toggle

This is the same as the API ("ApplyTaxAfterDiscount": false). The default value now is false. This would allow it to be true. Also would need it in the company settings API call to see the default.

katherinejoyceO
QuickBooks Team

Sales Tax and Sales Discount Defaults

You're most welcome, @pbrink231. I appreciate you for sharing your thoughts about having the default settings in the company's preferences rather than toggling within the invoice. 

 

You can also visit our QuickBooks blog to keep posted with our latest news, updates, and innovations.

 

Feel free to write again for your other concerns. We're always delighted to help. 

ChrisARC
Level 1

Sales Tax and Sales Discount Defaults

Please allow the user to set the taxable amount AFTER the discount. With some of the automated integration of apps, the settings need to be consistent. Are the engineers really counting on people to remember the toggle button each time. It's a blocker. 

Ryan_M
QuickBooks Team

Sales Tax and Sales Discount Defaults

Hi @ChrisARC,

 

Thank you for this reminder, we appreciate it.

 

The setting in question is currently being worked on to avoid this type of issue happening in the future. At this time, it's recommended to check and manually toggle the discount and sales tax, in case it gets swapped for some reason.

 

Don't hesitate to post a question below, if you have any. I'll get back to you shortly.

Anoosh
Level 1

Sales Tax and Sales Discount Defaults

Hi,

As you can see in the attached screenshot, the manual toggle is not there.

I need urgent help on this issue, can anyone help me with this, please?

GlinetteC
Moderator

Sales Tax and Sales Discount Defaults

I'll absolutely help you with this, Anoosh.

 

I can see that you're using another version of QuickBooks. The toggle option is only available in the QuickBooks US region. 

You can refer to the attached screenshots for your guide:


US version:

 

Dubai version:

 

You can consider signing up for a US version of QuickBooks to have the option.

 

You can post questions anytime here. We're here to help.

Anoosh
Level 1

Sales Tax and Sales Discount Defaults

Thank you @GlinetteC for quick replay.

 

Now how can I change my region? It seems I can't do that because that will be predefined on the first sign into QuickBooks.

If that is the case, it means I can't give an invoice to my customer and apply tax after discount? :-(

I really need to do that So what should I do? and if I have to signup for US version so what will happen to the current account and all data?

GlinetteC
Moderator

Sales Tax and Sales Discount Defaults

Good to have you back, Anoosh.

 

With your first question, you can sign up using the same log in credentials. I'll show you how to it:

  1. Go to this link: https://c23.qbo.intuit.com/qbo23/login?webredir.
  2. Click Sign up, then choose the version you want to use. You can try it for free.
  3. Scroll down, click the drop-down arrow in the Select a Country.
  4. Select United States of America.
  5. In the Sign in page window, click Sign in beside the Adding a company to an existing account?
  6. Enter log in credentials, then click Sign in.

After that, you need to set up your sales tax in QBO. You also need to make sure that the Discount feature is turned on. Here are the steps:

  1. Go to the Gear icon, select Account and Settings.
  2. Select Sales tab.
  3. In the Sales form content, select Discount.
  4. Put a check mark in the Discount box.
  5. Click Save, then Done.

Now, you can Export your data and then Import it into your new QuickBooks Online account. You can follow the detailed steps in this article: Move your lists to QuickBooks Online

 

 

Let me know if you have additional questions about this process. I'll be sure to answer them.

JP-JL
Level 1

Sales Tax and Sales Discount Defaults

We are actually having syncing issues do to this design.  Please review my image.

 

Due to the design that Tax, by default, is being implemented BEFORE the discount total, the logic in our sync software cannot balance out and/or find the phantom "Balance Due" line item.

 

Please implement a settings soon which lets the consumer apply the discount BEFORE/AFTER tax or Vice/Versa.

 

Our orders from our website aren't even able to be brought over at this point, and this issue is creating huge amounts of tedious corrections to be made.

 

JL

Charies_M
Moderator

Sales Tax and Sales Discount Defaults

Thanks for the screenshot, JP-JL.

 

I see your point and I appreciate you for sharing your idea about adding options that lets consumer apply discounts before or after sales tax in QuickBooks Online (QBO).

 

In line with this, I'll be sure to bring this request to our developers. It's our hope to cope up with our customer's needs and we're always working to make QuickBooks better.

 

For now, we don't have a specific turnaround time as to when will this option be available. However, you can check regularly for product updates and feature enhancement by visiting our QuickBooks Online Blog.

 

Also, once we receive some progress or enhancement about this feature, I'll make sure to inform you by updating this thread. I'm also looking forward of  having this option soon.

 

Please don't hesitate to notify me if you need further assistance. I'm here to lend you a hand anytime.

RonB3
Level 2

Sales Tax and Sales Discount Defaults

Why would quickbooks program the discount after tax? This creates an enormously frustrating situation when a POS reader is used, because you are not able to toggle the order during a sale using the mobile app.  This could be easily solved by defaulting to "before taxes" or at least including a toggle in the mobile app.

 

 

nikkim1
Level 2

Sales Tax and Sales Discount Defaults

Agreed. We have this issue as well. The tax should automatically be applied to the discounted amount, not the amount prior to the discount. Yes we can manually toggle each time but why in the world would you ever want the tax to be applied to the full amount when you have a discount in place?

computercpr1
Level 1

Sales Tax and Sales Discount Defaults

Yes I agree.  Please implement a settings soon which lets the consumer apply the discount BEFORE/AFTER tax or Vice/Versa

gg-equine
Level 1

Sales Tax and Sales Discount Defaults

This seems like a fairly straightforward fix - please take a look at @pbrink231 suggestions! It is an absolute pain in the butt to have to go into every sales receipt to manually change how it is being calculated. Especially when we are trying to automate things. Isn't that supposed to be the big benefit to QBO?!?

 

We need to be able to have a setting for the tax calculation AFTER the discount is applied. It makes no sense how it is set up currently to apply tax before the discount. Please, please, please make this a priority. It is a big issue with as many online transactions as we are dealing with. Manual entry is crazy for this. 

RareRoots
Level 1

Sales Tax and Sales Discount Defaults

Agree, this is a frustrating "default" that needs to be fixed either by defaulting to Discount BEFORE Tax or allowing the user to set their preferred default.  Going into each Sales Receipt each month to toggle it before I report sales tax is beyond frustrating.

Good suggestion provided in these replies by pbrink231.

KW72
Level 1

Sales Tax and Sales Discount Defaults

subtotal $565.00

Tax $62.70

 

?? 

 

 

we shouldn't have to do a "work- around' for this ...  

 

Anna WBS
Level 2

Sales Tax and Sales Discount Defaults

Hello, I have a question about possibility to apply the sales tax before discount on invoice.

It this case the seller supposed to record 100% of sales in his books and pay the sales tax on this amount. When actually the seller only got 90% of sales (10% discount), but took the sales tax on all 100%. So, when reported sales to the state, seller has to report sales 100% and pay to the state extra sales tax on sales that weren't actually collected? What is the point to collect sales tax before discount?

 

 

ZackE
QuickBooks Team

Sales Tax and Sales Discount Defaults

Welcome to the Community, Anna WBS.
 

In QuickBooks Online, you can apply sales tax to an invoice before applying discounts.
 

Here's how:
1. Use your + New button, then the Invoice option.2. Enter the appropriate details in each available field.
3. Select a tax rate from your drop-down menu.
4. Click Save and close.
 
If you need an accounting professional for specific tax-related questions, you'll be able to find one by using our Find an Accountant tool:

1. Go to https://quickbooks.intuit.com/find-an-accountant/.
2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.3. Select Search.
4. Review the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.


Once you've found an accountant, they can be contacted through their Send a message form:
1. Use your available text box to introduce yourself. Be sure to include details about the services you're looking for.
2. Enter the appropriate info in the Your name, Your email, and Your phone number (optional) fields.
3. Hit Send message

 

I've additionally included a resource about adding discounts to transaction records: Add a discount to an invoice or sales receipt
 

Feel welcome to send a reply if there's any other questions. Enjoy the rest of your day!

Anna WBS
Level 2

Sales Tax and Sales Discount Defaults

Hello ZackE,

Thank you for information you provided, but it did not answer my question.

What is the point to have sales tax before discount provided to the customer? This is wrong from accounting point of view. From the very beginning it should not be set up as default on invoice.

Imagine you are ordering some staff for $100, got discount of $10, but have to pay sales tax on all $100.  It is not a right way to address the sales tax.

 

 

 

 

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