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Best practices for invoicing in QuickBooks

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Updated

Introduction

Now that you've integrated Anrok & QuickBooks and configured your QuickBooks account, you are ready to start adding tax to your invoices. When creating and editing invoices, there are a few things you'll need to make sure are selected to ensure that your invoices can be ingested by Anrok . To set you up for success, we've provided the following workflow for you to use.

 

Before you begin, click here to take a look at what Anrok looks for when calculating tax on a QuickBooks invoice 

Checklist

Below is a checklist of what Anrok looks for when you send an invoice. In order to ensure tax is calculated and applied as expected, make sure the following information is included on all of your invoices.

  1. Customer's address — Providing the customer's complete address is essential for Anrok to determine what jurisdiction your customer is located in. Since taxability in a jurisdiction can differ by zip code, city, state, and country, we suggest being as detailed as possible when inputting your customer's address information.
  2. Issue date and due date — Selecting an issue and due date allows Anrok to determine whether the invoice is dated before or after your tax collection date within a given jurisdiction. It allows Anrok to determine which return to include the transaction within for filing.
  3. "Anrok zero tax rate" selected as the tax rate — In order for Anrok to apply its calculated tax onto your invoice, you will need to select Anrok zero tax rate (0%) as the tax rate. Doing so ensure that no tax rate outside of Anrok will attempt to block Anrok's tax calculation.
  4. Products and services — A key component of the Anrok tax calculation process in QuickBooks is the inclusion of products and services on your invoices. These product and services need to be configured into Anrok as product IDs with an assigned product type and tax category. This configuration process ensures that when this product or service is included on an invoice, Anrok can look at its corresponding product ID to determine the taxability and tax rate in a given jurisdiction.
  5. VAT ID — Adding a VAT ID to your customer's invoices is be essentials for tracking international economic nexus exposure. Anrok can use your customer's VAT ID to verify an invoice's taxability in a given country/region.
  6. Products and services marked as taxable — For Anrok to read an invoice, all products and services on the invoice must be marked as taxable. In cases where a product or service is not taxable, you can update the corresponding Anrok product ID to a non-taxable product type or tax category. If the customer is tax exempt, you can add the customer tax exemption certificate to the customer's profile in Anrok — which will prevent the tax calculation from being included on their invoices.

 

 

Workflow for creating and editing invoices

Try creating a new invoice in the demo above ☝️

  1. In the QuickBooks app CleanShot 2023-07-19 at 15.00.11@2x.png, go to a new or existing invoice.
  2. Under Customer, add a new customer or existing customer.
  3. Under Billing address, include the following information:
    • Zip code
    • City
    • State
    • Country code
  4. Select an Invoice date and a Due date.
  5. If needed, under customer_tax_id, enter the customer's VAT ID.
  6. Under PRODUCT/SERVICE, add the products and services being purchased.
  7. Under TAX, click the checkbox quickbooks_filled_checkbox.png next to each product and service (if not already selected).
  8. Under Select tax rate, select Anrok zero tax rate (0%).
  9. When you are finished, click Save.
  10. Reload the invoice to view Anrok’s updated tax amount.

 

 

Now that your Anrok & QuickBooks integration is complete, feel free to explore our QuickBooks FAQ article or reach out to us directly at support@anrok.com if you need any extra support or guidance.

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