Using QuoteWerks USA Advanced Sales Tax with QuickBooks
Overview:
QuickBooks Desktop cannot support displaying and allowing for the calculation of the multiple jurisdictions tax breakdown display each on a calculated line item of its own. Essentially the limitation in QuickBooks Desktop is that a line item based Sales Tax Item applies a calculation to the line item immediately above it. If you try to add another subtotal and then another sales tax item below it, it includes the previous line items sales tax amount in that second subtotal and so on. In QuickBooks, choose Reports->Vendors & Payables->Sales Tax Liability, you can see how these items appear.
The QuoteWerks approach is the same as Avalara AvaTax and others which is to export to invoice to QuickBooks from QuoteWerks and in the process set the invoice level tax item to "No Tax", and append to the end of the line items, a QuickBooks Subtotal line item and a special "Total QuoteWerks Tax" line below it with the advanced sales tax amount that was calculated in QuoteWerks (see below.)
Instructions for setting up QuickBooks Desktop and QuoteWerks to be able to export USA Advanced Tax to QuickBooks
1.In the QuoteWerks QuickBooks Integration Setup window, on the Mappings -> Items tab, under the Subtotal item mapping, make sure that you have mapped an existing QuickBooks Item Name that is a QuickBooks Subtotal Item type.
2.In QuickBooks Desktop, under Vendors->Vendor Center menu, create a vendor named "QuoteWerks Tax Calculations"
3.In QuickBooks Desktop, under Lists->Item List, create a new Sales Tax Item named "Total QuoteWerks Tax" and choose the Vendor as "QuoteWerks Tax Calculations"
4.In QuickBooks Desktop, under Lists->Item List, make sure a Sales Tax Item named "No Tax" exists.
That's it.
Since the QuickBooks invoice will only show the total amount of Tax, if you need to get the details used in filing your monthly sales tax filing, you can retrieve that information by running a Sales Tax Report from the from the Tools->Sales Tax Manager window.
