Tax Codes and QuickBooks Integration
When you use QuickBooks Online with Vantagepoint 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 Vantagepoint, so that the same set of tax rates/codes is used in both Vantagepoint and QuickBooks Online. In QuickBooks Online you can combine multiple tax rates into one tax rate, but in Vantagepoint, you cannot. The multiple tax codes in Vantagepoint 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 Vantagepoint do have a general accounts for tracking tax amounts.
You enter default credit and debit accounts for Vantagepoint 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 Vantagepoint from QuickBooks Online when you run the initialization process using the Initialize Vantagepoint button on the Integration Setup tab in . These default accounts are automatically added to the Account field on the Tax Codes tab in for each tax rate added to Vantagepoint from QuickBooks Online. The default credit account is added to the Outputs Account field in the Output section of the Options tab for a tax code. The default debit account is added to the Inputs Account field in the Input section of the Options tab for a tax code. If you use taxes for AP vouchers, before you run the initialization, you must enable the Tax Auditing feature in .
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 Vantagepoint directly on the Options 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 Vantagepoint 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 Vantagepoint and mapped. The tax codes are added in Vantagepoint in and on the Tax Code Mapping tab in . In the tax code grid on the Tax Code Mapping tab in the QuickBooks Integration utility, you see the Vantagepoint 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 Vantagepoint and QuickBooks Online for the First Time.
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. 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 Vantagepoint the next time the updating occurs between Vantagepoint 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 Vantagepoint in and on the Tax Code Mapping tab in Vantagepoint . On the Tax Code Mapping tab, you see the Vantagepoint 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 Vantagepoint in do not get automatically added to QuickBooks Online when you run the updating process.
Making Changes to Tax Codes
In Vantagepoint , 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 Vantagepoint the next time the updating occurs between QuickBooks Online and Vantagepoint.
The following are Tax Code fields shared between Vantagepoint and QuickBooks Online:
- Tax Code
- Description
- Rate
Reverse Charge Taxes
The reverse charge tax feature is not supported for UK customers who use Vantagepoint and QuickBooks integration.