Service Titan Knowledge Base

Set up manual sales tax in QBOLast updated on 02/28/2023

If your business uses the cash method to calculate sales tax, it is recommended to set up manual sales tax tracking in QuickBooks Online (QBO).

Things to know

  • Invoices exported to QBO are assigned sales tax rates based on the tax zone applied to the invoice in ServiceTitan. Make sure the correct tax zone is applied to invoices in ServiceTitan before exporting to ensure the proper tax rate is applied in QBO.

  • If the tax zone on an invoice is inaccurate, you can edit the invoice and update the tax zone.

Set up manual sales tax tracking in QBO

Before you begin tracking sales tax, set up your sales tax in QBO:

  • Turn on manual sales tax to enable the sales tax module in QBO and begin tracking sales tax in QBO.

  • Create ServiceTitan Sales Tax as a service item in QBO:

    • QBO does not create ServiceTitan Sales Tax zone automatically. You need to create this service item manually in QBO.

    • After you create the ServiceTitan Sales Tax service item, you can link ServiceTitan tax zones to it and it is added to exported invoices to display the tax amount that ServiceTitan calculated. This helps you validate tax calculations are the same in ServiceTitan and QBO.

  • Set up tax rates and groups:

    • QBO sales tax rates and groups must match the tax zones in ServiceTitan. Make sure that tax rates and groups in QBO match ServiceTitan tax zones so the correct tax rate is applied to invoices when exporting.

    • In ServiceTitan, when you setup tax zones, enter the QBO tax rate or group in the Tax Code field. This ensures that the correct tax rate is applied to an invoice when exported.

Set up tax zones in ServiceTitan

Before exporting transactions to QBO, set up your tax zones in ServiceTitan:

  1. Go to the navigation bar and click Settingsicon-settings.png.

  2. In the side panel, click Invoicing > Tax Zone.

  3. Click Add Tax Zone. Tip: To update an existing tax zone, click the Pencil icon next to the tax zone.

  4. Enter tax zone details:

    • Color—Select a color for the tax zone

    • Name—Name of the tax zone

    • Tax Rate—Percentage tax rate you want to apply to the tax zone Note: Make sure t to confirm the tax rate for the tax zone is the same as the QBO tax rate linked to the tax zone. You can link the QBO tax rate or group by entering it in the Tax Code field.

    • Tax Code—QBO tax rate or group name for this tax zone Note: After you export an invoice to QBO with this tax zone, the QBO tax rate linked here will apply to this invoice.

    • Sales Tax Item—Name of the item that appears on QBO invoices that exported from ServiceTitan, which should be “ServiceTitan Sales Tax” Note: The Sales Tax Item does not affect the invoice total in QBO but does show the ServiceTitan calculated tax amount in the item description. This helps you validate that both systems calculated the same tax amount on the invoice.

    • ZipCodes—Zip codes where the tax zone applies

  5. When you’re done, click Save.

Want to learn more?

Go back to QuickBooks Online Users for more on this topic

Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.

Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.