QuickBooks Onl Automated Sales Tax for Datto Autotask PSA (US Region)

Intuit upgraded their sales tax calculations to Automated Sales Tax (AST), which will automatically calculate the sales tax on an invoice.

Tax will be automatically calculated based on the following factors:

  • The state where you have nexus and are registered to collect sales tax
  • The physical address of your business
  • The physical address on the sales receipt or invoice
  • The product mapping you have associated with the products or services you are selling
  • The exemption status of your customer        

Click here to read more about how QBO calculates sales tax

What does this mean for you?

Not using AST?

Wise-Sync will batch invoices as normal. You don't need to do anything.

Using AST? Here's the low down.

Sales Tax rates set by Datto Autotask PSA (and synced by Wise-Sync) will be disregarded by QBO, rather, automatically calculating tax based on the AST method. Effectively control over sales tax rests with QBO.

Tax calculation discrepancies present between Datto Autotask PSA and QBO during sync will result in and out of balance transaction, as the tax calculation for the invoice being synced is different between the two systems.

Considerations:

  1. The AST calculation will refer to where you sold you items
  2. Where calculation differences are present between Datto Autotask PSA and QBO, this will result in an out of balance transaction, as the tax calculation is different between the two systems.
  3. AST cannot be fully supported by Wise-Sync due to Datto Autotask PSA not supporting shipping addresses and an issue with zero tax invoices. Click here for more information, including what you need to do.

Configuration

When the Override Sales Tax Level in Wise-Sync Company Settings > Tax Codes is set to Ignore, Wise-Sync disregard the sales tax amount set by Datto Autotask PSA and allow QBO to automatically calculating tax based on the AST method. Effectively control over sales tax rests with QBO.

When the Override Sales Tax Level in Wise-Sync Company Settings > Tax Codes is set to Warning, Wise-Sync will override the sales tax amount and allocate the tax to the agency defined by Datto Autotask PSA to the QBO invoice (Tax Override).

When the Override Sales Tax Level in Wise-Sync Company Settings > Tax Codes is set to Halt, any invoice that is not in balance will not be successfully batched to QBO. The resulting tax calculations must be corrected in Datto Autotask PSA, ensuring that a valid tax amount results. The out of balance transaction in QBO will remain until the records is successfully resynced and matches between both systems.

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