ERPAG 5.1

ERPAG - QBO Canada

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

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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.

The tax setting is divided into three parts:

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

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

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

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).

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

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.

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

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:

And the same document synced to the QBO:

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.