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tnolen
Level 2

calculating sales tax

I have a client who pointed out that the tax calculated by QB is $0.01 off.  The items total $267.00 and they should be charged 8.25% tax.  QB calculated $22.04.  However, when you do the math, it comes out to 22.0275, so tax should be $22.03.

How can I adjust the invoice to reflect the correct amount of tax?

Solved
Best answer May 10, 2019

Best Answers
tnolen
Level 2

calculating sales tax

I'm not sure I understand; do you mean manually calculate the tax from the Sales Tax group?  and put it where on the invoice?

View solution in original post

Anonymous
Not applicable

calculating sales tax

@tnolen 

RE: I'm not sure I understand; do you mean manually calculate the tax from the Sales Tax group? and put it where on the invoice?

 

I mean that this can appear to happen when you are using a sales tax group.  When using a group consisting of multiple sales tax items, each tax item is calculated to the nearest cent, since the detail can only be saved in cents, and then you see the total.

 

So if you are using sales tax groups, that can be a reason the tax appears to be once cent off.

 

View solution in original post

4 Comments 4
Anonymous
Not applicable

calculating sales tax

Are you using a sales tax group containing multiple sales tax items?

If so, calculate the tax for each item and then add it up.

tnolen
Level 2

calculating sales tax

I'm not sure I understand; do you mean manually calculate the tax from the Sales Tax group?  and put it where on the invoice?

Rose-A
Moderator

calculating sales tax

It's good to see you here in the Community, tnolen.

Thanks for getting back to us. Let me help you go over to your invoices and have those taxes calculate properly.

 

I've tried to replicate this and was able to get the correct sales tax amount.

 

 

To better isolate this issue, as an initial step, let's make sure your QuickBooks release version is up to date.

  1. From the QuickBooks Help menu, select Update QuickBooks.
  2. On the Update QuickBooks window, go to the Update Now tab. You can ignore the table because you don't need to change anything.
  3. (Optional) Put a check mark in the box Reset Update box to erase all previous update downloads.
    Note: This may increase the amount of time needed for the update.
  4. Select Get Updates.
  5. Restart QuickBooks. When prompted, accept the option to install the new release.

After that, try to re-create the invoice to check if it's calculating correctly. If you're still getting the same issue, you may want to open a sample company file. This is to check whether this has something to do with your company file or QuickBooks Program.

 

 

If you're able to get the correct sales tax amount using the sample company file, we can verify and rebuild your data. The data verification process in QuickBooks is a tool that examines the health of your QuickBooks company data file.

 

To Verify Data:

  1. Choose Window at the top, then Close All.
  2. Choose File.
  3. Click on Utilities.
  4. Verify Data.

To Rebuild Data:

  1. Choose
  2. Click on Utilities.
  3. Rebuild Data.
  4. You will receive a warning message to backup your company file, press OK.
  5. Click OKwhen you get the message "Rebuild has completed".

These articles are a good reference:

 

For additional help, you can also reach out to our QuickBooks Desktop Support. They have additional tools to assist you in getting this resolved.

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. In order to route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you

Let me know how it goes or if you ran into a different situation by leaving a reply below. I want to make sure your taxes are calculated correctly.

Anonymous
Not applicable

calculating sales tax

@tnolen 

RE: I'm not sure I understand; do you mean manually calculate the tax from the Sales Tax group? and put it where on the invoice?

 

I mean that this can appear to happen when you are using a sales tax group.  When using a group consisting of multiple sales tax items, each tax item is calculated to the nearest cent, since the detail can only be saved in cents, and then you see the total.

 

So if you are using sales tax groups, that can be a reason the tax appears to be once cent off.

 

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