Will is a member of a QuickBooks LinkedIn group where ProAdvisors ask questions and share valuable information to help one another better serve their clients. A colleague ran across an issue that she needed some advice on.
Colleague: Point of Sale (POS) Tax codes question. I believe the sales tax locations have been set up properly and are properly integrated with QuickBooks Financial Software (QBFS) but all these tax codes are creating some of the problems.
It's a new POS V2013 client. He has about 10 tax codes that he set up himself. In addition to “Tax” and “Non-tax” he has set up other tax codes including “out of state,” “resale,” “gov’t,” etc. His Bookkeeper, an Advanced Certified ProAdvisor, has asked for my help because they are having problems with sales tax. Any thoughts?
Will: So, unless you have specific requirements to map the Point of Sale (POS) tax codes to the QuickBooks Financial Software (QBFS) code, I never do. I run the sales tax report out of POS and pay the sales tax that it creates in QuickBooks. I have never found it to be off and all of the inactive items that POS creates are related to how POS creates sales receipts in QBF. By the way, if you think about locations as who you are selling to and codes as what you are selling that will help. I always set up tax locations for Out of State and Resale and instruct my clients never to use the exempt tax location. If they have government sales, we set up a government location, etc.