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Level 2

QB Point of Sales Sales Tax System Setup

I'm a ProAdvisor with significant experience in QB Desktop Pro and very limited experience in QB Desktop Point of Sale. I have setup a connection between POS and QB Desktop simply to be able to create a better Sales Tax Liability Report required to prepare the monthly sales tax report. The Sales Tax Summary in POS is completely inadequate. 

I've read all I could find on setting up the Sales Tax system in POS, and have tried several iterations, none of which seems to address the method we have for collecting and reporting sales tax. Help literature refers to setting up Tax Codes based on location and/or attached to an inventory item. In our state, sales taxes are paid to the State and the County (Parish) were the sale took place. All sales occur at the client's retail store, so location is not an issue.  The issue I'm having is that some customers may have an exemption from paying Sales Taxes to either County or State or Both on any item they choose. And there are different types of exemptions which my client would like to track separately, such as municipalities, agriculture or wholesale. Tying the Tax Code to the item makes no sense to me. The item type can either be taxable or non-taxable, but if taxable the status of the customer determines whether taxes will be collected on that item type. 

 

I'm am very familiar with setting up Sales Tax Items and Groups in QB Desktop Pro, but the POS Sales tax system is completely different and far from intuitive. My objective is to wind up with a Sales Tax Liability Report which reflects Total Sales less Non-Taxable Sales to equal Taxable Sales x Tax Rate = Taxes Due separated by taxing agencies (State and County).

It appears to me that POS uses the term "Tax Code" to mean different things within the program. 

I have wasted a number of hours trying to resolve this for the client (at no charge) and I am pretty frustrated with how different the sales tax systems are between POS and Pro. I have high praises for Pro. 

Can you provide some guidance that addressed my concerns or is the POS unable to track sales taxes in the manner I described above? In 20 years of QB consulting hundreds of clients this is the 2nd client I run across with QB POS. Getting certified in POS would be highly impractical due to the extreme limited exposure of this software in our State. 

3 Comments
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QuickBooks Team

QB Point of Sales Sales Tax System Setup

Thanks for checking out the Community, Grumpy145.

 

We truly appreciate you for expressing your love for QuickBooks Desktop and being part of the family. I'll make sure this gets smoothed out for you and your client.

 

QuickBooks Point of Sale works almost the same with QuickBooks Desktop when it comes to tracking payables for each sales tax when using multiple tax rate (tax codes). Please take note that there are several factors why the Sales Tax Detail report in Point of Sale doesn't match with the Sales Tax Liability report in QuickBooks Desktop. Please check the pointers that I've listed below:
 

  • Sales tax item has been inaccurately mapped
  • Sales were entered in QuickBooks Desktop that was not in Point of Sale or vice-versa
  • There are filters in the reports (Accruals or Cash) or the dates were filtered incorrectly
  • Possible data damage

To isolate the issue, let's make sure that to clear the filters applied to the report. I'll show you how to do it in QuickBooks Desktop Point of Sale:
 

  1. Select Reports from the top menu bar, then go to the Sales section.
  2. Choose Tax Detail.
  3. Click Modify, then Filter Data.
  4. Make sure the dates are correct and no information is excluded.
  5. Select Save, then hit Run.

Follow these steps for QuickBooks Desktop:
 

  1. Select Vendors from the top menu bar, go to the Sales Tax section.
  2. Choose Sales Tax Liability.
  3. Click the Customize Report button.
  4. Check the filters and dates, then make sure they are the same with Point of Sale report dates.
  5. Hit Refresh.

Alternatively, you can compare the transactions in the reports to ensure that they're identical and accurate:
 

  1. In the Sales Tax Liability report, double-click on the Sales Tax collected column of sales tax Item that doesn't match.
  2. Compare the transactions inside the reports.
  3. You can double-click on the invoice or sales receipt to further check the transactions.
  4. Re-enter transactions that are not in Point of Sale.
  5. If entering transactions in POS that already exist in QuickBooks Desktop, mark the document as already sent to QuickBooks Desktop. Otherwise, check the Financial Exchange activity logs for errors upon sending the files if there are transactions that are not in QuickBooks Point of Sale.

For more troubleshooting steps about this issue, I recommend reading this guide: Manage Sales Tax in Point of Sale when running Financial Exchange.

 

Additionally, here's an article that will help you change the tax codes or locations on individual sales if needed for special circumstances: Set up sales tax in QuickBooks Desktop Point of Sale.

 

I'm just one comment away if you have further questions about how sales tax works in QuickBooks. Have a great rest of the day.

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Level 2

QB Point of Sales Sales Tax System Setup

Thanks for your response to my questions.

Excerpt from your response: "QuickBooks Point of Sale almost works the same with QuickBooks Desktop when it comes to tracking payables for each sales tax when using multiple tax rate (tax codes). There are several causes the Sales Tax Detail report in Point of Sale doesn't match with the Sales Tax Liability report in QuickBooks Desktop."

Client is not running QB Pro for general accounting. It's only purpose is to generate the Sales Tax Liability Report. There are no accruals - this is a cash based system only. No other transactions are posted directly to QB Pro. Only activity is from the POS upload.

I'm relatively sure that the issue is caused by the Sales Tax Codes (Multiple) and Location Codes setup in POS. Location is a non-issue as all products are sold from one retail store. The issue is recording Sales Receipts for transactions where multiple tax agencies (State and County) have different tax rates and some customers may be eligible for a sales tax exemption of either the State or County or both. Those exempt transactions should reflect as Non-Taxable Sales. In one case the Sales Receipt reflected a exemption for County but the collection of State taxes (which was correct). The amount of that sale reflected on the Sales Tax Liability Report as Non-Taxable for the State not the County. 

In QB Pro I can setup a Tax Group containing a State Sales Tax of 4.45% and a County of 0.0%, thereby producing a Tax Group that applies State Sales Tax and no County but tracks the sale as Taxable for State and Non-Taxable for County. I cannot figure out how to do that in POS. The use of the term "Tax Code" with different meanings is also very confusing. There are pull downs on the Sales Receipt that do not list all the Tax Codes setup in Preferences / Company. 

I'll read through the links you provided and rec-check my mapping, but I think my issue is at a very fundamental level (meaning the structural setup of the codes). All the Help I could find continuously refers to Location Codes and attaching the Tax code to inventory items. The Help on Multiple Tax agencies is also very confusing. 

When I say my experience in QB Pro is extensive I'm not over-stating it (I have setup, repaired and remediated hundreds of sales tax systems over the last 20+ years). I cannot believe how difficult it is to get the Sales Tax System in POS setup correctly. The Client's POS system was setup when I arrived on scene and I did my best to correct several things that were obviously wrong, but it's still not right when it comes to tax exempt transactions. I searched the entire area (300,000 population MSMA) for another ProAdvisor with QB POS experience to take this client over and was not successful. 

It appears that help I will receive here is going to be links to Help documents I've already read. I wish that wasn't the case. 

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QuickBooks Team
QuickBooks Team

QB Point of Sales Sales Tax System Setup

Thanks for coming back and providing us with in-depth details of your sales tax concern on QuickBooks Point of Sale, Grumpy145.

 

I appreciate you for your time reading the recommended solutions provided by my colleague and coming up with some workarounds to get this sorted out. You're on the right track in setting up the sales tax for each county where you sell your goods or merchandise. By default, the system automatically considers the location of your company in the calculation of your sales tax as shown in the steps below:

 

     1. Specify that you collect sales tax

          a. Go to the File menu.

          b. Select Preferences.

          c. Choose Company.

          d. From the I want to option, select Sales Tax.

          e. Mark the Collect Sales Tax checkbox. 

     2. Set up sales tax location.

     3. Add tax codes

 

You can read through the Set up sales tax in QuickBooks Desktop Point of Sale article for more details about this one. For setting up a Tax Group containing a State Sales Tax of 4.45% and a County of 0.0%, it would be best to contact our QuickBooks Point of Sale Support Team. They'll pull up your account in a secure environment and assist you what this one. Here's how to reach them:

  1. Click the Support resources link.
  2. Go to the Technical Support section.
  3. Tick the Chat link or give them a call on the phone number showing on the screen.

Visit our QuickBooks Point of Sale page for more insights about managing your business in the software.

 

The Community always has your back if you have any other concerns or questions about QuickBooks. Assistance is just a post away. Have a great day.

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