% discounts need to be taxable, ok in ST import into QB turns to non-taxable

[tamilack]

I am told that you can't have a discount %, that calculates the taxable off too...or rather you can, but once it imports into QB desktop it will change it to non-taxable and it will look like a customer owes the tax on the discount.

Does anyone successfully use discounts % that are taxable and imported into QB?

I am not referring to membership discounts and not tasks as discounts (as I understand it the task discounts have to be manually calculated by the office or tech and there are variables on the end dollar amounts).

EX: Duct cleaning 10% discount off of the many vent that the techs need to count in the house.

Again it works perfectly in ST, but QB can't manage how it is set up in ST as discounts don't have a check box to say "taxable"...help!

Every other option (service, material, equipment) under the pricebook has the taxable with a checkbox...not discounts though. I have reached out to support and my CSM many times...

[tamilack]

Thanks, Diana for the comments! It is set as taxable in QB, but then once I import an invoice with the discount changes back to non-taxable. 

I have never heard of the Enhanced Sales tax...is that in QB or ST? 

Is tax from ST going over as a service line item or is it triggering tax to be calculated in QBD?" - not sure. On the invoice in ST it calculates perfectly. Something twists up on import and it seems since there is not taxable or no check box on the discounts, QB takes that is not taxable as the checkbox is to set at "true"...but this is my own thought as no one else is offering a solution.  The only response I get is the TAX doesn't work on discounts~ but it does in ST...it is the import into QBD that messes it up. 

[DianaK]

Check out this doc to see if you are setup on Enhanced - https://docs.google.com/document/d/1vyRnxMX3Kp8xkWcacryQ1fGtDQyky9Njs3hf1kvEVjM/edit?usp=sharing

If you are not, this might solve your problem.

[DianaK]

Did you double check that the discount item in QBD is marked as taxable, not just on the invoice but in your item list? ST does NOT change the taxable field on an item in QBD so you would need to adjust that in QBD yourself. 

On a side note, sinc eyou are in Canada, it's super important you have Enhanced Sales tax on, so I want to make sure. Is tax from ST going over as a service line item or is it triggering tax to be calculated in QBD?

[AmberC]

@tamilack I tried to research this in between customers today (I'm in ST technical support) and am coming up short! I would definitely ask your CSM to escalate a case to a specialist like mentioned above. They have vast amounts more knowledge and experience in this type of intricacy! 

[tamilack]

Thanks! I would love to hear if you hear of any solution! It might come up now that you have heard of it. Thanks again!

[tamilack]

Thanks for the clarifying questions! So we are in Canada and I am referring to our federal tax GST (all of our products and services have this tax applicable to them).

Here is an example of our scenario:

$199  = Duct Cleaning Package = $199 +

$13.95 x 5 = Extra Vents = + $69.75

= Subtotal = $268.95

-10% discount past customer discount = -26.90

= amount owing is $242.05 + GST (5% tax) = Amount owing is $254.15

(another way to look at this at each line item tax is "added" to the subtotal line or "subtracted" in the discount.)

In ST it works perfectly. The technician sees this amount and collects the amount due of $254.15. All balanced in ST. Then when I import it into QB desktop.  It changes the discount to "not taxable" as it comes over from ST without the option of taxable or not and decides that it has to be non-taxable so because it is not taxable there is the missing portion of the tax on the GST which then shows the customer still owes $1.35 for the underpayment the reduction of the discount + GST subtracted off the invoice.  

I had this issue originally then it was fixed with an update in something in the ST world and since about February it is an issue again and I have about 500 customer invoices in QB that I need to manually go into to change to discount from "E" to "G". 

It might seem like a QB issue, but all things are set up correctly in QB (many calls with QB) it forces the switch on import because the discounts don't allow a taxable or not taxable option...which is weird to me. 

[rstare]

Gotcha - when it comes to GST I always defer to the specialists right away, because that goes over my head! It sounds like you've reached out to your CSM, have you spoken with a specialist (or know if they've spoke with a specialist) about this to get confirmation?

[tamilack]

Thanks for the comments! Apparently, it has been escalated to the accounting specialist, "they know it is an issue" but it has been over 8 months now...my list of ~$1.28 AR customers is growing by the day. 

[rstare]

Hey @tamilack correct me if I'm wrong, but I'm not understanding the use case for why you would want to collected tax on what I'll call the "prediscount" subtotal. You're discounting the final price of the ticket to the customer, so if you aren't collecting the $ from the customer, how would you collect tax on it? IE, sales tax 10% (sake of round numbers) $200 invoice total, $100 discount, subtotal is $100. You wouldn't want to collect $20 in sales tax, right? You'd only want to collect $10 I would think, otherwise you are actually collecting 20% sales tax. I might be missing a use case though (and our state doesn't charge sales tax on services, so my experience is lacking a bit here).