Tax Codes and QuickBooks Integration
When you use QuickBooks Online with Vantagepoint and you use taxes for accounts payable vouchers, billing invoices, or expense reports, you set up tax rates in QuickBooks Online.
The tax rates that you enter in QuickBooks Online in that have an Active status are added as tax codes in Vantagepoint in . Unique tax IDs are created for the tax codes in Vantagepoint. The tax rate name from QuickBooks Online is used as the tax code description in Vantagepoint.
You can add tax codes in Vantagepoint , but they do not get added to QuickBooks Online.
When QuickBooks Online tax rates are added to Vantagepoint as tax codes during the initial integration setup and thereafter when you add a new tax, the following occur:
- The QuickBooks Online tax rates are automatically mapped to the Vantagepoint tax codes.
- Debit and credit accounts must be added to the tax codes in Vantagepoint.
Mapping Tax Rates to Tax Code
QuickBooks Online tax rates are automatically mapped to the Vantagepoint tax codes during the initialization process for the integration setup and thereafter when you add a new tax.
You see the mapping on the Tax Code Mapping tab in .
For more information, see the following topics:
Transactions Created with Tax Codes that Are Not Mapped
If you create transactions that are shared between Vantagepoint and QuickBooks Online using tax codes that are not mapped between Vantagepoint and QuickBooks Online, the transactions are not added to the other product when updating occurs between the two products.
Entering Default Tax Credit and Debit Accounts for Vantagepoint Tax Codes
You must enter a debit and credit general ledger account for tax codes in Vantagepoint for tracking tax amounts. A debit account applies for taxes on accounts payable vouchers and expense reports. A credit account applies for taxes on billing invoices.
The debit and credit accounts are not required for QuickBooks Online tax rates.
Before you run the initialization for the integration setup, you enter a default tax debit account and a tax credit account for Vantagepoint tax codes in the Vantagepoint QuickBooks Integration utility on the Integration Setup tab in the Advanced Options section.
When you run the initialization for the integration setup or add a new tax code after the initialization, the default tax debit and credit accounts are automatically assigned to each tax code in Vantagepoint that was added from QuickBooks Online.
The tax debit and credit account are prefilled in the following fields in Vantagepoint in the Input and Output sections of the Options tab for a tax code:
- The default debit account for accounts payable vouchers and expense reports prefills in the Inputs Account field.
- The default credit account for billing invoices prefills in the Outputs Account field.
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 directly on the Options tab in the Tax Codes Settings in Vantagepoint.
Single, Combined, and Compound Tax Rates
In QuickBooks Online, a tax rate can contain a single rate, a set of combined rates, or a set of combined compound tax rates. In Vantagepoint, tax codes contain only a single tax rate.
Each rate that makes up a combined or compound tax rate in QuickBooks Online is added to Vantagepoint as a separate tax code. When you enter an AP voucher or billing invoice in Vantagepoint, you must add all the separate tax codes that make up a combined or compound tax to the voucher, expense report, or invoice.
For compound taxes that include net plus tax, you must make an entry in the Tax to Include in Basis field for the tax in .
Making Changes to Tax Codes
Make changes to tax rates in QuickBooks Online. The changes are updated to the tax codes in Vantagepoint.
The following are Tax Code fields shared between Vantagepoint and QuickBooks Online:
- Tax Code
- Description
- Rate
If you change the entry in the Description or Rate field the change is not made in QuickBooks Online.
You can't change the entry in the Tax Code field.
Reverse Charge Taxes
The Reverse Charge Tax feature is not supported for UK customers who use the Vantagepoint and QuickBooks integration.