Verifying tax rates

The sales tax settings in MANAGESM and QuickBooks need to be an exact match. If you receive an error message stating that the tax rates must match, verify the tax values using this procedure.

In MANAGE SM, the fields Parts Tax Rate and Labor Tax Rate are on the Tax and Markup tab of the Company Setup window.

In QuickBooks when creating a company file, you indicate that you charge a sales tax.

To verify taxes in MANAGE SM:

Use the Tax/Markups tab to view the tax rates applied to parts and labor items.

From the Setup menu or shortcut bar, select Company Setup.
Select the Tax/Markups tab.
In the Tax Rates section:

Parts %: View the parts tax rate.
Labor %: View the labor tax rate.

Note: Labor, sublet and miscellaneous charges are taxed using the labor rate.

To determine the QuickBooks tax items applied in MANAGE SM:

Use the MANAGE Accounting Setup window to determine the QuickBooks tax items applied to parts and labor items when entering accounting information.

From the Setup shortcut bar in MANAGE, select Accounting Setup.

Result: The Accounting Setup window displays.

Verify that the name in the QB Parts Tax Item field (Labor tax, Parts tax or Out of State) exists in the QuickBooks Item List.
Verify that the name in the QB Labor Tax Item field (Labor tax, Parts tax or Out of State) exists in the QuickBooks Item List.

Note These should have been automatically created when the company file was created, but they may have been changed in QuickBooks.

To verify tax rates in QuickBooks (non-Canadian versions):

Tax rate information is stored in the Item list.

From the QuickBooks menu, select Item button.
Verify that items of the type Sales Tax Item exist.
Verify the tax rate in the Price column for the Sales Tax Item.

Tax rate information is stored in the Item list.

From the QuickBooks menu, select Item button.
Verify that items of the type Sales Tax Item exist.
Verify the tax rate in the Price column for the Sales Tax Item.

To verify tax rates in QuickBooks (Canadian versions):

Tax rate information is stored in the Item list.

From the QuickBooks menu, select Lists.
Select Item List.
Verify that items of the type Sales Tax Item exist.
Verify the tax rate in the Price column for the Sales Tax Item.

Tax rate information is stored in the Item list.

From the QuickBooks menu, select Item button.
Verify that items of the type Sales Tax Item exist.
Verify the tax rate in the Price column for the Sales Tax Item.

The values of the tax rates in QuickBooks and the setting in MANAGE SM Accounting Setup window must match the values in Tax Rates Matrix on the Tax/Markups tab of the Company Setup window in MANAGE SM.

Verifying tax rates

To verify taxes in MANAGE SM:

To determine the QuickBooks tax items applied in MANAGE SM:

To verify tax rates in QuickBooks (non-Canadian versions):

To verify tax rates in QuickBooks (Canadian versions):