Quickbooks 2004/2005 Training

Creating Sales Tax Items

If you selected multiple tax rates for your business during the EasyStep Interview, you can use the Item List now to set your sales tax items. Create an item for each sales tax rate, and for each sales tax agency:

1. On the QuickBooks toolbar, click the Item button, or select Item List from the Lists menu.
2. At the bottom of the Item List, click the Item button and select New from the menu that appears.
3. In the New Item window, select Sales Tax Item from the Type drop-down menu.
4. Enter a name for the sales tax.
5. Enter a description for the sales tax; this description will appear on your sales forms.
6. Enter the tax rate as a percentage (for example, 7.25%).
7. Enter the tax agency.
8. Click OK to save the tax item, or Next to save the item and add another one.

Setting Up Tax Groups

If you charge multiple taxes, consider setting up tax groups, which allow you to print sales tax as a single line item on an invoice:

1. In the Item List, click the Item button and select New.
2. From the Type drop-down menu, select Sales Tax Group.
3. Enter a name for the group and description for the group. The description will appear on your forms.
4. Click inside the Tax Item column of the list box. Click the down arrow button to select a tax item to include in the group.

QuickBooks automatically populates the rest of the columns for that item.

1. Click inside the Tax Item column for the next row and select another tax item. Continue to select tax items until you’ve added all the necessary taxes to the group.
2. Click OK to save the tax group, or Next to save the group and add another one.