Well, It is not a super engineering work to incorporate sales tax in your transactions when you use "Excel Transactions". We will see how it can be done in this article.
For U.S QuickBooks Companies, you can mention Sales Tax in all your sales transactions like Invoice, Sales Receipt, Estimate & etc.
Kindly go through the below link to setup Sales Tax in QuickBooks Online.
How to Record Sales Tax
In order to record Sales Tax for a transaction, you have to do the following:
1. We need to mark the Product or Service as taxable in the transaction.
2. Sales Tax Code should be given in the transaction.
The above information is given to "Excel Transactions" by mapping relevant fields from file. In the next section, we will see how the fields are mapped to get Tax information.
Please go through this link if you are new to Field Mapping concept.
In the Field Mapping Screen, for each Transaction Type (Invoice, Sales Receipt, Estimate & Credit Memo), you will get following QuickBooks Fields.
1. Line Item Taxable
2. Sales Tax Code
3. Sales Tax Amount (this is Optional)
1) Line Item Taxable
This field takes only BOOLEAN value such as “TRUE” / “T” or “FALSE” / “F”. If “Line Item Taxable” is TRUE, then the particular product or service will be counted for Sales Tax.
Sample File Template:
2) Sales Tax Code
This field takes PROPER Name of your Sales Tax. You can find the tax code name in QuickBooks UI (Sales Tax menu). The Sales Tax Codes can be found by navigating to
Sales Tax (left navigation bar) > Add/edit tax rates
and agencies California, Tucson, AZ State tax and Tucson City are Sales Tax Code's in the below screenshot.
You can also refer the sales tax code in Sale Transactions UI (QuickBooks). Check this invoice Screen. The Sales Tax Code is "California" in the example.
3) Sales Tax Amount
This is an optional field. Because, “Excel Transactions” will automatically calculate the tax based on Sales Tax Code and sends the final tax amount to QuickBooks Online.
As we want to control over everything, we have provided an option to override the calculated amount. You can use this field to feed the actual tax amount.