Goal:
Syncing Taxes to QBO
How to add taxes to QuickBooks
Answer:
For Customers using a US QuickBooks Online instance:
When syncing a bill to QuickBooks Online, Procurify can sync in 3 different ways.
Option 1: Adding taxes as a cost type
When adding taxes as a cost type to the bill, the amount will sync to QuickBooks Online as a new line item and populate fields based on the cost type setup. To create and manage your Bill Cost Types, visit How to create an additional cost type Bill Custom Field.
Option 2: Adding Tax as a line item
When adding tax as a line item (either manually or as a miscellaneous cost from PO), it will sync to QuickBooks Online as a new line item and populate fields based on the line item information.
Option 3: Using Procurify’s in-line tax functionality
When using Procurify’s in-line tax functionality, you can add specific taxes to each line item. Once the bill is synced to QBO, you will see that the line item total (line item cost + tax amount) is synced. This will ensure your bill total matches that in Procurify.
For customers using a non-US QuickBooks Online instance:
When syncing a bill to QuickBooks Online, Procurify can sync in 3 different ways.
Option 1: Adding taxes as a cost type
When adding taxes as a cost type to the bill, the amount will sync to QuickBooks Online as a new line item and populate fields based on the cost type setup. To create and manage your Bill Cost Types, visit How to create an additional cost type Bill Custom Field.
Option 2: Adding Tax as a line item
When adding tax as a line item (either manually or as a miscellaneous cost from PO), it will sync to QuickBooks Online as a new line item and populate fields based on the line item information. This will not populate the Tax sub-cost field in Procurify.
Option 3: Utilizing the Procurify inline tax functionality
When using Procurify’s in-line tax functionality, you can add specific taxes to each line item. Once the bill is synced to QBO, you will see that the line item cost and the selected tax code are synced. Please note that Procurify will only sync over the tax code and not the tax amount (The tax code for GST is synced, not the tax amount). Therefore, the tax codes must be set up correctly in Procurify and QuickBooks Online.
0% tax codes used on line items
When a tax code of 0% (such as Zero-rated) is selected in Procurify for all line items on the bill, it will sync as ‘Out of Scope of Tax’.
If theres a mix of tax codes, then the Zero-rated tax code will be applied to the pertinent line items and the other items will have the selected tax codes and the bill will be ‘Exclusive of Tax’
Tax Inclusive Checkbox special situations
If the Procurify Tax incl. checkbox is checked on all items, then it will sync as ‘Out of Scope of Tax’.
If, for a single bill, some items have the Tax Incl. checkbox marked and other items with it unmarked, then it’ll create an ‘Exclusive of Tax’ bill in QBO. The items which have the Tax Incl. checkbox checked will have their tax code changed to Exempt instead of what is selected in Procurify.