There are 3 key components in TCR that interface with QuickBooks during the process of transferring invoices from TCR to QB - Customers, Chart of Accounts and Sales Tax Rates. It is very important that this information match exactly between the two systems.
The Customer name in TCR must match EXACTLY to the Company name in QuickBooks (QB). If it does not match, it will create a new customer record in QB when invoices are imported. This new record in QB will not have any of the basic customer information like address and contacts.
The same is true for Job Names if you use the feature to separate out each customer’s invoices by job when exporting - the job name/address must match. And TCR only exports the TCR Job# and first 34 characters of the job, so that is what needs to match. Regardless if you choose to export invoices by job name, the job address will appear in the Memo field of the invoice in QB for reference, and can be added to reports if necessary.
QB does not allow duplicate customer names. And in addition, it looks at active and inactive customer AND vendor names when checking for duplicates. So if you have a City of Phoenix as a customer, you can not use the same name as a vendor for payables (i.e. sales tax). If this happens, you will get an error message during the import of invoices and the invoice will not get imported.
For each branch you can select a default tax code. When a job is created and the Branch is selected, the default tax code will fill in. This is usually set to the tax code of the location of the branch.
Chart of Accounts:
Each Revenue Account Name must match exactly to how it appears in QB. And you must have Sales Tax Payable entered for the account name in TCR as this cannot be changed in QB.
Only the revenue accounts, sales tax payable and accounts receivable accounts are used in the export of invoices from TCR into QB.
If you use revenue sub-accounts in QB you must enter the main account name:sub-account name (with a colon in between names). For example: Revenue:Traffic Control Plans.
The Description is what will appear in the body of the QB invoice for each account with the total charges for that revenue account.
The export file only exports one line per TCR Revenue Code and not all the individual line items that appear on the invoice. If you use separate revenue codes, but the same QB account name, they will appear on separate lines on the invoice even though the description may be the same.
If you have generic Items set up in QB that relate to the revenue accounts (i.e. Rentals), you can enter that next to the revenue account. This is not required.
If you have more than one branch, you need to set up the information for each branch.
Even if you do not charge sales tax, you need to set up at least one Tax Rate and Tax Group. You would just enter 0 in both columns for the tax rates.
However, if you don’t charge tax on your rentals but you do for any sale items, then you do need to enter the tax rate for equipment. When you create your price lists, you will determine which items are taxable and which are not.
The Tax Group (code) is assigned to each Job and is a required field for the job. It will default to the Tax Group (Code) assigned to the branch you select for the job but can be changed. This tax code will determine what tax rates are used for the invoice for a particular job.
If the customer is tax exempt, the job will be tax exempt unless you manually change the tax exempt field on the job. If the job is tax exempt, it will not charge sales tax regardless of the tax code assigned to the job.
You can setup a special Sales Tax Item in QB called Tax Exempt, if you want those grouped together on the Sales Tax Liability report.
Depending on if you charge sales tax just from your location or based on the job location, you may have multiple tax rates and tax groups.
You also have the option of charging sales tax on equipment and/or labor and use different rates.
Depending on how you setup your Sales Tax Items in QB will determine how you set them up in TCR. Sales Tax Groups allows you to have one Tax Code that has the total tax rate applied to the invoice, but when it gets exported to QB, it will use the various components (city, county, state) that make up the total tax. Both the tax group and individual tax items must be setup in QB and TCR.
Again, the names of these items must match EXACTLY or you will get errors with importing the invoices.
You first must enter all the various tax rates (city, county, state). If you only need to export one ‘group’ (i.e. Sales Tax), you can make the rate equal to the total sales tax rate.
If you only charge sales tax based on your location, you will only have one tax group to enter. However, if you have multiple branches, or charge the tax rate based on the location of the job, you will need to setup each tax rate and group.
The Description is very important and must match the Sales Tax Item Name (not description) you have setup in QB. You must also match the Tax Agency Name for that particular tax item. Both these fields are exported and used on the sales tax liability report in QB.
If your rates ever change, you will need to update the Tax Rates for each specific area. The total tax rate in the Tax Group will automatically get updated. For example, if the State Tax rose by .05%, you only have to change it in one place.
Once you have all the individual Tax Rates setup, you then create Tax Groups. Depending on the level of detail you need in QB, a group may have only 1 rate added or multiple tax rates. And you may only have one Tax Group for your company.
The Tax Group Code should indicate what the parts are (i.e. city/state or city/county) so it will be easy for user to identify it when adding it to the job.
The Group Name is what will show at the bottom of the QB invoice next to the tax rate and must match QB Sales Tax Item Name (not Description) or you will get errors during the import.
As you enter various tax rates to the group, it will calculate the total tax rate for the group.