Recording Taxable Orders - What works right for your business?

When it comes to recording Taxes into your accounting software, Unify Enterprise can handle any type of taxable situation that your online store can collect, but it must be set up to do so.

Simply put, the ways that Unify Enterprise can calculate tax are:

  • Do not record sales tax (Typically some wholesale or B2B businesses)
  • Record sales tax by using the tax rates set up in QuickBooks
  • Record sales tax directly from what was calculated on your online store (as a line item in QuickBooks)
  • Record sales tax with Avalara AvaTax

**NOTE** If you are on NetSuite, you MUST allow NetSuite to calculate taxes based no the rates that are set up in NetSuite.

Not recording Tax

If you are not recording tax at all on your online store you should consider your business scenario. If you should be calculating tax on your store but are not, it is most important to get that set up online. Unify Enterprise cannot change the tax rates that customers are charged on your online store, so making sure they are being accurately charged at checkout is usually the most important.

Additionally, Unify Enterprise relies on the tax value recorded online to choose whether or not an order is taxable. Meaning if a customer was NOT charged tax online, they are NOT going to be charged tax in Unify Enterprise.

Recording sales tax with QuickBooks

As mentioned above, recording sales tax with the sales tax items or groups that are set up in QuickBooks requires that the order be charged tax to begin with on the online store. If the order says it was charged $0.00 sales tax, then Unify Enterprise will not try to mark the order as taxable.

Once an order was considered taxable on the online store we can tell QuickBooks to calculate tax on it as well.

The advantage to using QuickBooks to calculate the taxes is that you are able to use Sales Tax Liability reports within QuickBooks.

Single Tax Rate

This is most simple if you only have one tax rate. Setting up simple taxable versus non-taxable orders can be found here. Basically, you will need one Sales Tax Item in QuickBooks that is equal to your state % rate, and one 0.0% item which represents out of state orders.

Multiple Tax Rates

Additionally, if you have multiple taxable regions they can be set up as well. Once an order is deemed taxable, if you have selected multiple taxable regions, it will be sent to that rule set where it will determine which of the taxable regions you have mapped should be the correct tax location for this order. These taxable regions can be mapped one-to-one with tax items in QuickBooks as per this article.

These multiple tax regions can be mapped by State, County, City, and Zip Code to their relevant tax region in QuickBooks.

Sales Tax as a Line Item

 

The advantage to recording sales tax as a line item is that it will record exactly what was charged to the customer in your online store. This means that it relies solely on your store being set up to collect the correct tax. Multiple tax rates can be set up by the same criteria as mentioned in the above category.

The disadvantage to this is that it forgoes using QuickBooks Sales Tax Liability Reportsas it does not use the native spot to record taxes within QuickBooks.

Setting this up within Unify Enterprise can also be found here

Avalara AvaTax

If you are on the Premium or above plans, you have access to integration with Avalara. **NOTE** This requires you already have an Avalara account to use it within Unify Enterprise.

There are several related documents that can be found on how to set up and use Avalara within Unify Enterprise which can be found here

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