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Level 1

Sales tax

When entering a Sales Receipt line item of $99, and using a sales tax rate of 9.95%, QB calculates the tax to be $9.86 but when I do the math, the result is $9.8505. Does it always round up, no matter what? Seems incorrect to me. I am using a single list item tax rate, not group. What am I missing?

 

Windows 10, QB Pro 2019.

Solved
Best answer November 10, 2020

Best Answers
QuickBooks Team
QuickBooks Team

Sales tax

Thanks for bringing this one to our attention, Robb10505.

 

There are times that a sales tax amount will automatically round up when calculated based on the amount of the invoice or sales receipt. If there are a few more pennies collected, we can process a sales tax adjustment to make sure you keep an accurate record of these taxes. Just follow the steps and details in the Process sales tax adjustment article. 

 

If the round up amount is far from the correct one, let's try opening another company file to check if you're having a problem with only one file and not the program itself. Let me show you how:

  1. In your QuickBooks, go to the File menu at the top left.
  2. Choose Close Company.
  3. In the No Company Open window, click the drop-down arrow in the Open a sample file icon.
  4. Choose a sample file and click on it.

Then, create an invoice with sales tax items. If it will provide you the exact rate, there may be a damaged data on the company file you've been working with. We can run the Rebuild Data tool is built-in to fix any company file data issues.  Just follow the detailed steps in the Fix data damage on your QuickBooks Desktop company file article.

 

Visit our Sales Taxes page for more insight s about paying and managing sales tax in your software.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you, Take care always.

View solution in original post

2 Comments
QuickBooks Team
QuickBooks Team

Sales tax

Thanks for bringing this one to our attention, Robb10505.

 

There are times that a sales tax amount will automatically round up when calculated based on the amount of the invoice or sales receipt. If there are a few more pennies collected, we can process a sales tax adjustment to make sure you keep an accurate record of these taxes. Just follow the steps and details in the Process sales tax adjustment article. 

 

If the round up amount is far from the correct one, let's try opening another company file to check if you're having a problem with only one file and not the program itself. Let me show you how:

  1. In your QuickBooks, go to the File menu at the top left.
  2. Choose Close Company.
  3. In the No Company Open window, click the drop-down arrow in the Open a sample file icon.
  4. Choose a sample file and click on it.

Then, create an invoice with sales tax items. If it will provide you the exact rate, there may be a damaged data on the company file you've been working with. We can run the Rebuild Data tool is built-in to fix any company file data issues.  Just follow the detailed steps in the Fix data damage on your QuickBooks Desktop company file article.

 

Visit our Sales Taxes page for more insight s about paying and managing sales tax in your software.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you, Take care always.

View solution in original post

Level 1

Sales tax

Thank for the reply. I ran through your suggestions and ended up recreating the tax amounts in the sample file with the same result. So I dug deeper into the taxes and it appears it is, in fact a tax group. So the 9.95% tax is the sum of 4.45% and 5.5%. When I do the math individually on the two taxes, round them individually first, then add them, I get the $9.86 as opposed to the $9.85 from using the straight 9.95%.

 

So I guess that's where the issue lies. It seems I may have to modify my POS system to accommodate the issue rather than QB.

 

Cheers

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