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Level 1

Location based sales tax is incorrectly calculating for just one delivery location

In our membership-based business we have orders which are opened to our customers/members for a set period of time and then we close the order and generate invoices for those customers who purchased items. We often generate in excess of 100 invoices in conjunction with an order and use Zed Axis to import our invoice information into QBO in order to automate the invoicing.

 

Since we deliver our products to centralized locations we charge the sales tax based on the specific delivery location and not our address, nor the address of our customers. In order to get the newer version of QBO to generate the correct sales we've "tricked" it into accepting the delivery location to calculate appropriate sales tax. This is working for 19 of the 20 delivery locations we have. But for some reason we have one location in which the sales tax is defaulting back to our business address. 

 

Any thoughts on what could be causing this, and how to troubleshoot for and/or fix the problem?

1 Comment
QuickBooks Team

Location based sales tax is incorrectly calculating for just one delivery location

Thank you for discussing the detailed information of your concern, @jandt.

 

I'll provide some information and troubleshooting steps on how to resolve the sales tax that is defaulting back to our business address. 

 

There are only several more things we'll need to prepare to make this resolve. First, we'll need to set up the Tax Agency for your customer's location:

  1. Go to Taxes in the left navigation menu.
  2. Select Sales tax settings.
  3. Click the Add agency button.
  4. Enter the correct AgencyFiling Frequency, and Start date.
  5. Tab Save.

Once done, make sure that the shipping address is entered in your customer's profile is correct. 

 

Here's how:

 

  1. Click Sales on the left navigation menu, then choose the Customers tab.
  2. Select the customer name, then hit the Edit button.
  3. In the Address tab, enter the correct details in the fields for the shipping address.
  4. If you entered a Billing address, and it's the same as the shipping address, then check the Same as billing address check box.
  5. Tap Save.

 

After that, let's create a sample invoice to if the address is functioning well. Then click the See the math link perpendicular to Sales tax. See the sample screenshot below. 

 

 

Otherwise, I recommend following more troubleshooting options through this link: Default customer sales tax rate in QBO.

 

Additionally, for more information about how to set up and use sales tax and how to apply it on your transactions, just in case.

 

Let me know if you have any queries. I'm happy to assist. Keep safe!

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