erpag-qbo-canada

ERPAG 5.1

ERPAG - QBO Canada

Advanced inventory and manufacturing for Quick Books Canada. How to handle synchronization, defining tax categories, tax locations.

QuickBooks Online Canada

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1. Introduction

Unlike the US version of QuickBooks Online (QBO) where the tax calculation is done automatically depending on the customer's address, with the Canadian version, additional settings are required.

When opening a new database, tax information is partially filled.

QuickBooks Online Canada

QuickBooks Online Canada

The tax setting is divided into three parts:

a. Tax Category - The information that will be associated with each item.

QuickBooks Online Canada

b. Tax Location - The information about the location ("origin" / "destination") that will be associated with the document / customer or warehouse.

QuickBooks Online Canada

c. Tax Jurisdiction - The information about the tax rates (eg British Columbia 12% = 7% GST + 5% PST).

QuickBooks Online Canada

By crossing the Tax Category and Tax Location (and the sum of Tax Jurisdiction) we get a cumulative tax rate.

For more information on how to set up taxes, you can read in our User manual: https://learn.erpag.com/project/products-and-services/untitled-3/taxes

2. Connecting QBO and ERPAG

How to link ERPAG and QBO and how the synchronization process works can be found on our blog at the following link: https://www.erpag.com/news/quickbooks-online-and-erpag-(manufacturing)

3. Tax Category settings

Before synchronizing with QBO, it is necessary to pair the tax rates from ERPAG with QBO.

It is necessary to set rates in QBO before the sync (we recommend that your accountant does it).

QuickBooks Online Canada

When editing each Tax Category you will have a separate column where you need to select the Tax Code from QBO.

QuickBooks Online Canada

Make a note that you can delete the Tax Locations you don't use.

4. Setting up Tax Location

Because of the Input Tax Credit, it is mandatory to set up the Tax Location in the Warehouse list for each warehouse.

QuickBooks Online Canada

Also, you can set up the Tax Location for each customer (for example if we have the tax calculation "by destination")

QuickBooks Online Canada

Note that it's possible to change the Tax Location with each created Sales Order, while it's not possible with the Purchase Orders, the tax location will always be as it's set for the warehouse.

5 Purchase Order / Supplier Invoice

When creating a PO, or if it's automatically generated from the fulfillment, it's necessary to enter Input Tax Credit in the total amount invoiced by our Supplier according to Tax Jurisdiction. Tax Location will always be as it's set for the warehouse.

The example of a document in ERPAG:

QuickBooks Online Canada

And the same document synced to the QBO:

QuickBooks Online Canada
Note: If the Input Tax Credit is calculated more or less than the percentage calculation for items (eg decimal rounding), the amounts from the Purchase Order will always be transferred to QBO. For example, if in our example we enter 15.00 instead of 14.3 (how much we get by the percentage calculation for each item) in the QBO document the transferred amount will be 15.00.

QuickBooks Online Canada

And the QBO document:

QuickBooks Online Canada
6. Sales Order / Invoice

The Sales Order can be sent to QBO only after it gets a status - Invoiced.

The document example in ERPAG:

QuickBooks Online Canada

And the same document in QBO:

QuickBooks Online Canada

The example in ERPAG (when Tax is 0):

QuickBooks Online Canada

And the same document in QBO:

QuickBooks Online Canada

7.       „By Destination“

If there is a need to charge a tax based on the customer's address, ie, to apply tax rates from that 
province, it is also needed to determine the tax location in ERPAG.

Example in ERPAG:

QuickBooks Online Canada

If there is no paired tax category, ERPAG will display the error and activate SET UP (we will 
immediately see which data needs to be determined).

QuickBooks Online Canada

QuickBooks Online Canada

The document in QBO:

QuickBooks Online Canada








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