Setting up Tax locations in QuickBooks POS
You would need to do this if you have chosen the either tax calculation options in eCC Desktop of:
My online store calculates tax
Creating tax items in QuickBooks POS
Tax items are created just like regular items in QuickBooks POS. But the tax item has a few different qualities.
Step 1: Create the item by going to Inventory->New item
Step 2: Setting up the tax item
Name: give the tax item a name the shows what this is. This name will show as an item within a Sales Receipt
a. Type: the tax item should always be a non-inventory part. You can't have a quantity for this type of item.
b. Department: should be assigned to an admin department. In this example it is set to the default "system" department.
c. Tax: the tax item must be set to "non".
Important: If it set to "tax" the tax item will be taxed by QuickBooks, resulting in double tax and errors when posting to QuickBooks POS.
Step 3: Click Save to successfully create the tax item in QB POS.
What happens in QuickBooks POS
a. When the tax item is used to calculate tax, the tax appears on a sales receipt as a line item, just like a purchased item.
b. The tax indicator is set to $0 because QuickBooks did not calculate the tax.
Since it was calculated by the online store, there is no need to have QuickBooks calculate the tax again.