How To - Determine which tax will be used in Canadian QuickBooks



When posting invoices from ESC to the Canadian version of QuickBooks the tax code used is not necessarily what is used in ESC. This article will show you exactly how QuickBooks handles this.


Even though we are matching up the tax groups and tax items to the tax code in ESC, this actually have no affect on the tax on the invoice. What does affect this are the tax codes from the Sales Tax Code List in QuickBooks. The settings in these tax codes are what will affect the invoice in QuickBooks. By default, there are a few options in this list. Here is what determines which one will get used with the posted invoice from ESC:

  1. If there is a tax code named Tax in the QuickBooks Sales Tax Code List, the invoice will use this for the invoice.
  2. If Tax does not exist, then the tax code associated to the customer record in QuickBooks will be used.
  3. If the previous is not true, then the tax code in the non-inventory item created in QuickBooks will be used.
  4. Lastly, if none of the above are true then the invoice will use what is the default non-taxable code in QuickBooks. This can be found in Edit | Preferences | Sales Tax.
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