Overview

This feature has been added to allow businesses to report non-taxable material sales to multiple QuickBooks Tax Codes.

When entering line items on a QuickBooks invoice each line item can be listed as Taxable (Tax) and Non-Taxable (Non). These two tax codes are created automatically by QuickBooks during the installation or creation of a company. These tax codes are used for reporting purposes to identify goods and services that are taxable or are not taxable. Previous version of QuickBooks Synchronization only used the two available default tax codes when transferring transactions to QuickBooks.

When these changes are not implemented a transaction processed with a tax code other than Exempt where any part of the transaction or the material was considered exempt, QuickBooks will select the QuickBooks Non-Tax (Non) Sale Tax Code

Customers are able to create a custom Sales Tax Code List in QuickBooks and associate the QuickBooks tax codes with Interact tax codes. This will enhance the QuickBooks tax reporting capabilities. Tax Codes in QuickBooks are different than how we use Tax Codes in Interact. In Interact a Tax Code is a group of taxing authorities used to create a total tax percentage. QuickBooks uses Tax Groups to do the same thing, however QuickBooks Tax Groups are not used with QuickBooks Synchronization. A customer may use them in QuickBooks for other purposes outside of Interact. Do not get confused if you see Tax Groups used in QuickBooks. Interact does not use them.

Example Tax Code Setup

For every QuickBooks Sales Tax Code a corresponding non-tax code must exist. In the following example QuickBooks has been configured with five (5) Tax Codes each with a corresponding Non-Tax (Non) code . The Sales Tax Code list in QuickBooks will look similar to the following.

Interact must be configured in the same way. When completed the Interact Sales Tax Code list will look similar to the following.

The codes used in QuickBooks must match the codes in Interact. The non-tax codes will not have any tax authorities listed.

QuickBooks Synchronization Links

Once the tax authorities, sales tax items, and tax codes have been configured in Interact and QuickBooks the Links in the QuickBooks Synchronization module can be created.

Start Interact and QuickBooks. In Interact select Utilities | QuickBooks Synchronization. Click Connect to QB button and then click the Links tab.

Tax | Tax Authority | Sales Tax Item

Select Tax | Tax Authority | Sales Tax Item, a window similar to the following will appear.

Use the Add Link to... buttons to establish links between Interact Tax Authorities and QuickBooks Sales Tax Items. The table will look similar to the following when completed.

The Exempt record in QuickBooks will not have an established link in Interact since all of the tax codes will have corresponding tax exempt codes. The See Above QuickBooks Record is used for another purpose in the Settings tab.

Tax | Tax Code | Sales Tax Code

Once the tax authorities and sales tax items have been linked, select the Select Tax | Tax Code | Sales Tax Code link type, a window similar to the following will appear

Use the Add Link toTo... buttons to establish links between Interact Tax Codes and QuickBooks Sales Tax Codes. The table will look similar to the following when completed

The generic Tax record in QuickBooks will not have a link to Interact.

Tax (Exempt) | Tax Code | Sales Tax Code

Once the tax codes and sales tax codes have been linked, the tax exempt codes need to be linked. Select the select Tax (Exempt) | Tax Code | Sales Tax Code link type, a window similar to the following will appear.

Both of the Interact taxable tax codes and non-taxable tax codes will need to be linked to the QuickBooks tax exempt tax codes. This will ensure transactions where a taxable tax code is selected and the material item is set to tax exempt, the sale will be listed correctly on QuickBooks reports. Click the Add Link To QB button (Bayfield County (Non-Tax) for our example.

A fly out similar to the following will appear.

Select the corresponding QuickBooks Sales Tax Code (BFE for our example). Click the Establish Link button.

Select the Add Link To QB button on the corresponding taxable code (Bayfield County for our example). The same fly out window appears. Select the corresponding exempt QuickBooks Sales Tax Code Code (BFE for our example). Click the Establish Link button.

Continue until all links are established. The window will look similar to the following when completed.

The default Interact Tax Exempt record and the QuickBooks default Non record will not have a link.

Adding Sales Tax Codes in QuickBooks. (make separate page)

Start QuickBooks. Select Lists | Sales Tax Code List. Select New from the Sales Tax Code drop-down list in the lower left corner.

Image Removed

Enter a Sales Tax Code and Description. Select the Taxable or Non-Taxable radio button and click OK to save. The QBIM will match the QuickBooks Sales Tax Code with the Interact Sales Tax Code.

If the default Tax and Non codes will not be used, they can be set inactive after the Sales Tax Preferences have been changed for the Taxable and Non-Taxable items. To set new default codes select Edit | Preferences. Select Sales Tax from the menu on the left. Click the Company Preference tab.

Image Removed

Set a new default for Taxable Item Code and Non-Taxable Item Code in the Assign Sales Tax Codes section. Click the OK button to save changes and continue.

Zero Item or Subtotal Line Item

If an error similar to the following appears in the QBErr.Log file verify all transactions for the selected invoice date range have a valid tax exempt code selected.