Quickbooks Online Sales Tax Issue

[palexader]

We are an NC company with ServiceTitan since Feb.  We have tried many times to correct various Sales Tax issues.  The current one that seems to consume hours to repair...ServiceTitan upon exporting an invoice...sends the amount for Sales Tax to a "Product and Service" in QBO labeled Solar Labor.  Apparently Solar Labor is a default somewhere in the reaches of Service Titan and I can't seem to find it.  I have a ServiceTitan Sales Tax also set up in QBO as a "Product and Service".  I also have a general ledger liability account "Service Titan Sales Tax" at the suggest of ServiceTitan support.  Can anyone point me to where this default label might be?

[michael21]

Happy to help @palexader, and I'm glad you are on the right track.  This is what the community is for, so I hope you will stay involved and perhaps share your experiences with someone else who may need the help.

[michael21]

Hi @palexader Don't know about on-line, but in Desktop, changing the G/L account an item is charged to is done by going to inventory list, selecting the item, and then editing the item.  All three accounts, (income, cost of sales, and inventory) should be on that screen.  We actually created a sales tax item called ST Sales Tax in our pricebook services section and that is what all of our sales tax codes are coded to use.  As I recall, thought, if you don't have such an item set up, ST will use an internally created once and make its own assumptions from there.  Probably not the best way to do things.  Again, I would recommend that you, or your admin person study the Knowledge Base article I cited above and use it as a guide to set up sales tax workflow.

[palexader]

@michael21 Thank you! Thank you!  The information you provided helped so much.  I contacted support via chat and they were able to narrow down the problem as being a set up issue.  I contacted our CSM who eventually made the change and it appears to be working perfectly now (one test invoice under our belt).  I can't believe that I have had to spend days each month trying to get the correct numbers when the solution (once I knew what to ask for) was so simple.  Hopefully October's filing will be a breeze (since September will be the first month that it will be working correctly).  Thank you so much for helping me!  You are awesome!!

[palexader]

@michael21 Thank you, Michael...I did discover that Solar Labor is the default Service item in QBO and I have search to determine how to change that but I have been unsuccessful.  And we don't have a Sales Tax set up in the Price Book that I could locate.  I am not the main contact with ServiceTitan but my understanding is that we haven't had a ton of success with our CSM.  Sales tax was set up in QBO prior to starting with ServiceTitan and things were going well.  I believe that ServiceTitan isn't talking to QBO specifically about Sales Tax and sending the sales tax to the default item which happens to be Solar Labor.  Your comments have helped so much as I work to narrow down the issue.  Thank you!!  

[michael21]

Hi @palexader.  I'm a desktop user, but I am guessing that the online version works the same.  Assuming that your sales tax item is set up in Titan's pricebook, and that it is also set up in QB, the account QB will use isn't in Titan, but is on the item in QB.  I have been bitten by this myself several times, so I'm now conditioned to look first at the QB item to see what account it thinks I should use.  Its a bit frustrating that the export doesn't make this change for you, but it doesn't appear to.  Just on the surface, though, the workflow you describe does not appear to match Titan's recommended setup.  I would suggest discussing this with your CSM to be sure that Online sets up the same as Desktop, and if it does, review the Knowledge Base article "Basic sales tax setup for QuickBooks Desktop" for fairly detailed instruction on how to set this up.  Hope this helps.