On occasion, the sales tax rates in Quickbooks Online (QBO) do not match InflatableOffice (IO) software when a Lead imports into QBO. If this happens, you will receive an email notification from IO Alerts (alerts@inflatableoffice.com). The subject line of the email will detail the customer name and the Lead number. The body of the email will look something like this:
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We have detected a discrepancy between the QuickBooks and InflatableOffice tax rates on this lead:
QBO: $3.22 (1% + 6.25% + 1% = 8.250%)
IO: $2.83 (7.250%)
We recommend overriding their tax rates with ours, as they're typically more accurate. If you are logged in, you can click the following link in order to override these tax rates.
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If you click on the "More Details" link at the bottom of the email, it will open a browser window in order to view or "Add Tax Override".
- The tax override will not change how IO charges sales tax. It only overrides QBO to match IO. It does this by creating a Custom Combined tax rate within Quickbooks.
- If you want to add the tax override, click Save & Close at the bottom of the screen.
- If you do not want to add the tax override, just close the browser window without saving.
- Optional: on the tax override, you can edit the address or the names of tax localities. For example, you may want to change the locality name, if it only names the locality as "District(s)" because you'll want the name to be meaningful to you when it imports into QBO (and when you view your Sales Tax Liability report). However, be aware that the IO software does support multiple district lines.
- You can view/edit your list of QBO Tax Overrides anytime by going to: https://rental.software/account/#/settings/qbotaxes
What about penny discrepancies? You won't receive an email warning for penny differences, but you might come across these in QBO. Sometimes, even though the sales tax rate will match between QBO and IO, there is a difference of a penny (or two). This is actually caused by QBO applying rounding differently during the sync. We have asked QBO developers for a resolution, however since we don't know when this will be resolved, what you need to do is:
- In QBO, open/edit the invoice.
- Click "See the math" (this link is under the sales tax section of the invoice).
- Click "override this amount" (or sometimes the link might display as "enter sales tax manually")
- Enter the correct sales tax amount (from the IO lead)
- Enter the reason for override as "the rounding is off"
- Click "Apply override" and click close.
- If the balance due now shows as $0.00, then save the invoice. If not, re-do the above steps. Also, be aware that since you are making this penny change in QBO, it could get re-synced again (should you or someone else make an edit to the Lead). If it gets re-synced, then it will have a penny discrepancy, which will require you to repeat these same steps.
How can I view all discrepancies? In QBO, you can view all the penny discrepancies (or other differences between your QBO invoices and payments) by doing the following:
- In QBO, click on Sales, then All Sales.
- The click the "Status" column to sort it in ascending order. An arrow pointing up means that column is sorted in ascending order.
- From here you can edit the invoice(s) as applicable. But remember, unless it is a penny difference, it is always best to make your edits in the IO software (otherwise, if the Lead gets re-synced in QBO, it will override your edits).