QuickBooks Setup Canada – STEP 1 – Creating Sales Tax Items

In order to use AccuPOS Point of Sale and have it update QuickBooks for inventory and accounting purposes, a QuickBooks company file must be set up beforehand and the location on the local network, or computer, of the company file must be known in order for AccuPOS to connect and update the company file.

If this is the first time installing QuickBooks, please consult your QuickBooks advisor or Intuit’s customer support with questions pertaining to accounting issues while setting up the new company. 

AccuPOS support staff will only support issues regarding QuickBooks that affect the integration with AccuPOS Point of Sale.

This guide is also under the assumption that the network is setup and all software installed according to the AccuPOS Network Setup Guide. 

The adapter, AccuPOS Management, and AccuPOS Point of Sale must be installed on the network or computer.

NOTE: The Tender Summary account may not balance completely due to summarization of VAT values and penny rounding.

This discrepancy will not be more than a few cents per invoice and should balance out by the end of the fiscal year to be quite minimal.

Table of Contents

  • Step 1:  Creating Sales Tax Items
  • Step 2:  Creating a CashSales Customer
  • Step 3:  Create a Tender Summary Account
  • Step 4:  Setup QuickBooks Adapter
  • Step 5:  Import the Inventory
  • Step 6:  Define Tender Summary Account
  • Step 7:  Define GL Accounts for Tendering Codes
  • Step 8:  Test the Integration

STEP 1: Creating Sales Tax Items

Typically, when creating a company file with the Canadian version of QuickBooks, all tax codes and their associated tax items are set up for you based off the Province you are located in.  If that is the case, you may skip the majority of the steps outlined in this section but please refer to step 7D just in case.

If during the process of creating the company file, you chose to configure your taxes manually, follow these instructions:

  1. Go to Lists   Item List.

    quickbooks initial setup items list

  2. Select Item at the bottom of the Item list window and select New. The New Item window appears.

    new item in dropdown menu

  3. Choose Sales Tax Item as the type of item to be created.

    sales tax item type

  4. Enter the Name, Description, Rate, Tax Agency, and the Tax Agency return line for each tax. (For more information on setting up your taxes and rates, AccuPOS recommends talking with your accountant or QuickBooks specialist.)

    • For AccuPOS and QuickBooks to correctly collect taxes you will need the following tax items:
    • GST at the correct % (for purchases)
    • GST at Zero % (for purchases)
    • GST at the correct % (for sales)
    • GST at Zero % (for sales)
    • PST at the correct % (for purchases)
    • PST at Zero % (for purchases)
    • PST at the correct % (for sales)
    • PST at Zero % (for sales)
    • For those provinces that use QST or HST, set those items up accordingly; AccuPOS will still pull that information over as well.

  5. Click OK when finished. Repeat steps 1-4 to create all Sales Taxes that are to be collected at the Point of Sale.

  6. You must now assign your Sales Tax Items to a Sales Tax Code. Go to Lists   Sales Tax Code List.  The Sales Tax Code List window appears.

    sales tax code list

  7. Select each code and set the sales tax item to this code:

    A.   Code ‘S’ needs to be assigned GST and PST at the correct rate.
    B.   Code ‘G’ needs to have GST only.
    C.   Code ‘Z’ needs to have GST and PST with a Zero percent.
    D.   Code ‘.’ is a special code that AccuPOS utilizes.  QuickBooks may or may not have created this code.  If not, it will need to be configured with a description of NOT USED and set as non-taxable.

    Make sure that when assigning taxes to Items or Customers that you only use the tax codes that are set up here, using tax codes that are not set up will cause QuickBooks to report errors when trying to export sales.

    Once all taxes are created, they will import into AccuPOS along with the inventory.  From there, they will be applied at the Point of Sale.

NEXT is Step 2:  Creating a CashSales Customer