Integrate Anrok & QuickBooks

Support

May 13, 2023 01:00

Introduction

This guide outlines the process for linking your QuickBooks account with Anrok. This will allow you to automatically synchronize transactions and update sales tax to your QuickBooks invoices.

Click here to take a look at how the Anrok & QuickBooks integration works

Integration architecture

From a high-level perspective, Anrok is a tool used to determine the taxability of a transaction and appends the local sales tax rate to the transaction if applicable. In addition, the platform helps track nexus exposure by aggregating all transactions in a given jurisdiction and comparing them against the relevant state thresholds. Other benefits include managing registration, returns, and remittance.

The diagrams below depict the key Anrok integration touchpoints in a typical transaction.

Transaction example

Invoice creation: the billing team creates and saves an invoice in QuickBooks.
Calculate and record tax: QuickBooks notifies Anrok of the updated invoice and sends all relevant information for tax calculation - including the products sold and customer address. Anrok calculates the relevant tax amount and updates the QuickBooks invoice using the QuickBooks API. You can continue to update items on the invoice, and tax will be updated accordingly in both QuickBooks and Anrok.
Payment: sellers are required to remit sales tax to a state upon invoice, not receipt of payment. Anrok is not in the integration flow of payment.

Checklist

Below is a checklist of steps that should be followed during the Anrok integration process.

Provide Anrok with the Product IDs and Webhook Verification Token, then complete the OAuth 2.0 authorization process.
Test the integration in the QuickBooks test environment.

Step 1

Connect to QuickBooks

The first step of integrating with QuickBooks will be connecting directly to your QuickBooks account within Anrok. During this process, you must align your accounting time zone and provide the credentials associated with your QuickBooks account.

Try connecting to QuickBooks in the demo above ☝️

In the Anrok app , go to Data sources. Take me there!
Select Integrate system, then under Accounting time zone, select the time zone that matches your QuickBooks account (or select UTC if you don't know which time zone to select).
Under Data source, select QuickBooks.
When prompted, click Connect to QuickBooks, then sign in with your QuickBooks credentials and complete the two-factor authentication.
Once you see " You are now logged into QuickBooks”, click Connect.

Step 2

Add your QuickBooks products and services as product IDs

In Anrok, your QuickBooks products and services will be called product IDsProduct ID
They describe the specific product or service that was sold to your customer. Product IDs are passed to Anrok from your billing system as the product(s) you are including on the invoice.
CleanShot 2023-08-17 at 11.17.48@2x.png
Each product ID you sell must be mapped to a corresponding tax configuration in Anrok, which signals what taxability ruleset to apply to the product.. These product IDs are the key driver for calculating taxability. It's important that you add your QuickBooks products and services into Anrok. See What are product IDs?

Try adding your QuickBooks products in the demo above ☝️

Under New products detected, select a corresponding Product type and Tax category for each product detected. See Select a tax configuration.
If you'd like to assign a Product type and Tax category to multiple products at once, click the checkbox next to each product, then select Batch assign.
When you are finished, scroll down and click Add products.

Step 3

Import your QuickBooks transactions

Now that you've assigned all your product IDsProduct ID
They describe the specific product or service that was sold to your customer. Product IDs are passed to Anrok from your billing system as the product(s) you are including on the invoice.
CleanShot 2023-08-17 at 11.17.48@2x.png
Each product ID you sell must be mapped to a corresponding tax configuration in Anrok, which signals what taxability ruleset to apply to the product., You can now begin importing your historical transactions from QuickBooks into Anrok.

Try importing your QuickBooks transactions in the demo above ☝️

Under Select transactions to import, select one of the following options:
- Import all past transactions — all transactions will be imported into Anrok. This will result in a complete picture of your economic nexus exposure.
- Import transactions from a specific date — some past transactions will not be imported into Anrok. This may result in an incomplete picture of your current economic nexus exposure.
- Continue without importing past transactions — none of your historical transactions will be imported into Anrok. This may result in an incomplete picture of your economic nexus exposure.
Select Import transactions (or Mark as finished depending on your previous selection).
When your transactions have finished importing, select Mark complete.

Step 4

Manage setup for external updates

Anrok requires that you set up and manage external updates between Anrok and QuickBooks. Setting up these external updates in Anrok will help ensure Anrok can calculate tax on your transactions.

Note

Any fixes made while managing QuickBooks setup for external updates will require up to 30 minutes to fully apply in QuickBooks.

Try managing setup for external updates in the demo above ☝️

In the Anrok app , go to Data sources. Take me there!
Under Integration sources, click the Options menu button next to QuickBooks, then select Manage setup for external updates.
If external updates to your QuickBooks invoices are disabled, click Enable.
Under Automated sales tax, review whether Automated sales tax is enabled. If you see a Warning icon , you will need to set up Automated sales tax in QuickBooks. See Activate sales tax calculation in QuickBooks.
Under Products, review whether all of your QuickBooks items are considered taxable. If you see an Information icon stating that your QuickBooks account contains non-taxable products, click Fix issue.

Tip

Don't worry about a non-taxable product getting taxed! If a product is non-taxable, you can select a non-taxable tax configuration when setting up its product ID in Anrok. If the customer is tax-exempt, you can upload the customer's exemption certificate.
Under Customers, review whether all of your QuickBooks customers have a 0% default tax rate. If you see an Information icon stating that your QuickBooks account contains customers without a 0% default tax rate, click Fix issue.

Note

Before you begin creating and editing invoices, you will need to make sure QuickBooks has been properly configured for tax calculation. Check out how to configure your QuickBooks account.

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