Problem
Invoices were supposed to be tax exempt in ServiceTitan but were not, causing discrepancies between ServiceTitan and Quickbooks. The payment was applied correctly in ServiceTitan, but when exported to Quickbooks, the amount did not add up correctly.
Solution
To make sure taxes are applied correctly:
If you are charging tax on a customer or location level, make sure the Taxable option is selected on the Customer Record or the Location Record detail.
If you are charging tax on the Pricebook level, go to each service in the Pricebook and make sure the Taxable option is selected.
To correct an invoice with taxes charged:
Add a negative payment with the amount of the tax charged, and select the payment type Refund for the negative payments.
Check the invoice balance to make sure it is properly adjusted.
Create a batch and place the adjustment invoice and negative payment you just created.
Bypass the export on this batch.
Edit the payments in Quickbooks manually to make sure the balances match with ServiceTitan.
FAQ
Why is the sales tax on my ServiceTitan invoice different from the sales tax on my QuickBooks invoice?
If the sales tax on your ServiceTitan invoice is different from the sales tax on your QuickBooks invoice, it might be because:
Your tax zones are not set up correctly in ServiceTitan. Your tax zones should match the rates you have set up for your customers in QuickBooks. For setup instructions, click here.
You have not set up your sales tax items correctly in QuickBooks. For setup instructions, click here.
You have not assigned the correct sales tax item to your customer in QuickBooks. For setup instructions, click here.
How can I troubleshoot tax issues on invoices?
Start by checking whether each task on the invoice is correctly marked as taxable. If a pricebook item was recently changed from non-taxable to taxable, remove and re-add the task to apply the update.
Next, review your tax zone mapping in QuickBooks integration settings to confirm zones are linked correctly. Finally, validate customer addresses to ensure ServiceTitan assigns the proper tax zone for each invoice.
Why is the sales tax on my ServiceTitan invoice different from the sales tax on my QuickBooks invoice?
If your sales taxes are different, ensure that sales tax is not populating in the tax field on the QuickBooks invoice. Sales tax amounts should show as line items.
If sales tax is populating in the sales tax field on the invoice:
Ensure the customer is set as non-taxable. You can change this by navigating to Customer > Customer Center > Customer Name > Edit Pencil > Sales Tax Settings > Tax Code.
Ensure the services are set as non-taxable. You can change this by navigating to Lists > Item List > Item Name > Right-click > Edit Item > Tax Code.