Tax Codes and QuickBooks Integration
When you use QuickBooks Online with DPS and you use taxes for billing invoices, accounts payable vouchers, or both, you set up tax rates in QuickBooks Online.
The QuickBooks Online tax rates get mapped (linked) to corresponding tax codes in DPS, so that the same set of tax rates/codes is used in both DPS and QuickBooks Online. In QuickBooks Online you can combine multiple tax rates into one tax rate, but in DPS, you cannot. The multiple tax codes in DPS that make up one tax rate in QuickBooks Online are automatically mapped.
Default Tax Credit and Debit Accounts
Tax rates in QuickBooks Online do not have general ledger accounts associated with them for tracking tax amounts, whereas tax codes in DPS do have a general accounts for tracking tax amounts.
You enter default credit and debit accounts for DPS tax codes in the QuickBooks Integration utility when you first set up the QuickBooks integration. The credit account applies for taxes on billing invoices. The debit account applies for taxes on accounts payable vouchers.
The default accounts are automatically assigned to each tax code that is added to DPS from QuickBooks Online when you run the initialization process using the Initialize DPS button on the Integration Setup tab in . These default accounts are automatically added to the Account field on the Tax Codes tab in in the DPS desktop application for each tax rate added to DPS from QuickBooks Online. The default credit account is added to the Account field in the Output section of the Tax Codes tab for a tax code. The default debit account is added to the Account field in the Input section of the Tax Codes tab for a tax code. If you use taxes for AP vouchers, before you run the initialization, you must enable the Tax Auditing Feature on the Tax Auditing tab in in the desktop application.
If you do not enter default tax credit and debit accounts before you run the initialization, you can manually enter the accounts for each tax code in DPS directly on the Tax Codes tab in .
Because QuickBooks Online does not associate tax rates with general ledger accounts, you do not need to map the general ledger tax accounts in DPS with any tax accounts in QuickBooks Online.
Initial Mapping of Tax Codes
When you run the initialization process during the initial QuickBooks integration setup, tax rates from QuickBooks Online () are automatically added as tax codes in DPS and mapped. The tax codes are added in DPS in in the desktop application and on the Tax Code Mapping tab in . In the tax code grid on the Tax Code Mapping tab in the utility, you see the DPS tax code in the Tax Code field and the QuickBooks Online tax rate that is mapped to in the QuickBooks Online Reference field.
For more information, see Map Tax Codes Between DPS and QuickBooks Online for the First Time.
Transactions Created with Tax Codes that Are Not Mapped
If you create transactions that are shared between DPS and QuickBooks Online using tax codes that are not mapped between DPS and QuickBooks Online, the transactions are not added to the other product when updating occurs between the two products. For more information, see Failed Transactions Due to Missing Account or Tax Code Mapping.
Adding New Tax Codes
When you need to add new tax codes after you complete the initial QuickBooks integration, add tax rates in QuickBooks Online in . The new tax rates are automatically added and mapped to tax codes in DPS the next time the updating occurs between DPS and QuickBooks Online. The process is the same as when you ran the initialization process during the initial set up of the QuickBooks integration. The tax codes are added to DPS in in the desktop application and on the Tax Code Mapping tab in DPS . On the Tax Code Mapping tab, you see the DPS tax code in the Tax Code field and the QuickBooks Online tax rate that is mapped to it in the QuickBooks Online Reference field.
Warning: Any tax codes that you add directly in DPS in in the desktop application do not get automatically added to QuickBooks Online when you run the updating process.
Making Changes to Tax Codes
In DPS , the tax code fields that are shared with QuickBooks Online are read-only. Make changes to existing tax codes/rates in QuickBooks Online. The changes are updated in DPS the next time the updating occurs between QuickBooks Online and DPS.
The following are Tax Code fields shared between DPS and QuickBooks Online:
- Tax Code
- Description
- Rate