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Why does QuickBooks Online require a sales tax category for each item on a sales receipt?

Forum|Forum|2 years ago
March 26, 2024
9 replies
46 views

In the morning today 3/25/2024 I processed a sales receipt without any problems. By the afternoon, some sort of update had taken place requiring a tax location on each item added to a sales receipt. When I would try to assign a tax location, the whole transaction would cancel out and I would be back to the customer screen.

I thought this had to be a mistake. Why in the world would it be necessary to assign a tax rate to each individual item on every sales receipt? Isn't a tax location for the whole sales receipt enough? I then deleted and downloaded QBO, but this time it was even worse: All the tax rates were gone.

So then I called Intuit and the rep told me that Intuit does not support the App. This whole thing has brought my mobile business to a grinding halt. I don't know if there is a way out of this. I just don't understand how Intuit can treat its customers this way.

QuickBooks Online

Best answer by katelynner

Why sales receipts now ask for a sales tax category on each item

This is how automated sales tax works, not a bug. Instead of picking one flat tax rate for the whole sale, QuickBooks Online figures out tax for each item based on three things: your customer's tax status, where you sell or ship, and the sales tax category assigned to that item. If an item doesn't have a category set up yet, QuickBooks can't calculate a rate for it, so the sales receipt can look like your tax rates disappeared entirely, even though they're still working fine on invoices you haven't touched yet.

How to fix it

Set up your sales tax first if you haven't already, so QuickBooks knows which tax rules apply to your business.
Check which items need a category. Taxability can vary by state, and sometimes by city, and some products or services qualify for special or reduced rates.
Assign a category to each item:

Go to All apps, then Sales & Get Paid, then Products & services.
Find the item and select Edit.
Select Sales, then Sales tax category.
Search or browse for the closest category and select it.
Select Save.

Once every item you sell has a category, QuickBooks applies the right rate automatically instead of leaving it blank for you to fill in by hand.

If you'd rather handle a specific tax manually, for example a special rate that doesn't have a matching category, you can set up a custom rate and apply it directly on the sale instead of relying on the automated calculation.

For more information on sales tax in QuickBooks Online: Learn how QuickBooks automatically calculates sales tax, Add a sales tax category to products and services, Set up and use automated sales tax in QuickBooks Online

Have a follow-up on setting up categories for your items? Reply below and we'll walk through it with you.

C

Candice14

Level 8

Hey there, @Service.

Thanks for coming here with your concerns about the issue with your QuickBooks Online Mobile App.

To clarify, have you tried doing the steps you performed in the app but in the web browser that's on your device? If not, let's try to see if that's a workaround for you.

In the meantime, make sure that the app and your device is up-to-date so that it can work properly.

I'll be here waiting for your response!

ServiceAuthor

Using the pc version on my mobile device is a workaround that have tried, but the pc version is not optimized for a mobile device and there are problems with doing so that too numerous to mention.

W

wjurls

I and several others have the same issue. Mine started 10 days ago. All we get from support is the boilerplate bot solutions. Something indeed changed that they either refuse to acknowledge, or just don't care.

I also have a thread involving this problem.

D

DebSheenD

Level 5

I acknowledge the efforts you've put in to resolve the issue of sales tax, @wjurls. Let me make it up to you by ensuring that we investigate this matter further.

As the problem persists, I would suggest reaching out to our Customer Support Team. They have the necessary tools to investigate the attachment link and provide you with other troubleshooting steps to get this resolve. To reach them, follow the steps below:

Sign in to your QuickBooks Online company.
Select Help (?).
Choose either tab to get started:

Assistant: Get quick, personalized answers. Select a suggested option, or type a question or topic you need help with. If you decide you need further help, you can still Talk to a human.
Search: Search the QuickBooks Online knowledge base directly, or select Contact Us and choose a way to connect with us:
- Start a chat with a support expert.
- Get a callback from the next available expert.

Furthermore, know that it's possible to personalize your invoice in your QBO app. You can read its thorough steps in this article: Customize invoices on QuickBooks mobile app.

Should you have any additional concerns or questions with your invoices on mobile, please do not hesitate to leave a comment below. I will be happy to help.

ServiceAuthor

Hi DebSheenDd:

I just want to clarify a few things for you:

1. The problem is with the app, specifically with Sales Receipts.

2. The problem is not with Invoices on the app.

3. The problem is not with the pc experience.

4. The latest version of the app is on my phone because it was just downloaded.

5. Calling Intuit phone support isn't helpful because they say they don't support the app.

6. Sales receipts now require a tax rate for each item added. This is absurd and has no purpose.

7. The app deleted all my tax rates for sales receipts, but they still exist for invoices.

8. I can't add a tax rate to an item even if I wanted to, because there are none stored.

9. The workaround is to use invoices on the app, but invoices are time consuming.

10. Some of your users have the new sales receipt format, others don't.

katelynner

Answer

Community Manager

Why sales receipts now ask for a sales tax category on each item

This is how automated sales tax works, not a bug. Instead of picking one flat tax rate for the whole sale, QuickBooks Online figures out tax for each item based on three things: your customer's tax status, where you sell or ship, and the sales tax category assigned to that item. If an item doesn't have a category set up yet, QuickBooks can't calculate a rate for it, so the sales receipt can look like your tax rates disappeared entirely, even though they're still working fine on invoices you haven't touched yet.

How to fix it

Set up your sales tax first if you haven't already, so QuickBooks knows which tax rules apply to your business.
Check which items need a category. Taxability can vary by state, and sometimes by city, and some products or services qualify for special or reduced rates.
Assign a category to each item:

Go to All apps, then Sales & Get Paid, then Products & services.
Find the item and select Edit.
Select Sales, then Sales tax category.
Search or browse for the closest category and select it.
Select Save.

Once every item you sell has a category, QuickBooks applies the right rate automatically instead of leaving it blank for you to fill in by hand.

If you'd rather handle a specific tax manually, for example a special rate that doesn't have a matching category, you can set up a custom rate and apply it directly on the sale instead of relying on the automated calculation.

For more information on sales tax in QuickBooks Online: Learn how QuickBooks automatically calculates sales tax, Add a sales tax category to products and services, Set up and use automated sales tax in QuickBooks Online

Have a follow-up on setting up categories for your items? Reply below and we'll walk through it with you.

Why sales receipts now ask for a sales tax category on each item

How to fix it

Why sales receipts now ask for a sales tax category on each item

How to fix it

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