Sales taxes in ServiceBridge appear from the synchronization with QuickBooks Online and this is a temporary workaround to setup QBO taxes model if automated sales taxes are enabled for the account.
In the new QuickBooks Online Automated Sales Tax model, the taxes are automatically assigned to the Invoice according to your company address, and possibly the shipping address of the customer.
First of all, you need to set up sales taxes in QBO. To do so, go to the Taxes section in the menu at the left and press the Set up sales tax button:
It will get you to the screen where you need to enter your Company address as a first agency:
According to the address that you provide here, QBO will select the tax rate automatically for you.
The next step is to select whether you are going to have some Customers in the other cities (for different tax rates):
If you select yes, the program will give you the possibility to enter some more agencies and if you select no, it will just ask you to enter some more information about the agency which address you've entered previously.
Next step is adding some details to your agency like Start of tax period, Filing frequency and start date:
When you set up one agency, you can add another by pressing the 'Add agency' button, or delete one by pressing on the trash bin icon.
If you choose to add an agency, the 'Add agency' pop-up appears at the right of the page and you can select the Agency (Either only a state, or a city), Filling frequency, Start of tax period and Start date from the dropdown:
After you hit 'Save' button, it will appear in the list of your agencies. You can add as many agencies as you want:
A good thing is that you don't need to add all the possible agencies because you can always add a new one on demand. Just go to the Taxes section in your QBO dashboard and press the button 'Sales tax settings' at the bottom right:
This will open an 'Edit settings' window where you can manage your tax agencies by adding a new one, editing an existing one, or making them inactive:
An important part is, that creating an Agency in QuickBooks, does not automatically synchronize the tax codes to ServiceBridge. The tax codes are synced to QBO only after a first invoice for that Agency's territory is created.
It means that if you have a new tax agency in QBO, when creating a first Customer in that territory, you will not see this tax code in the dropdown at the Default Tax field. You should mark this Customer as taxable, but leave it without the tax code:
When the new Customer for that Agency's territory is created, you need to create an invoice for this Customer in order to sync the tax codes from QBO.
Again, when you create this first invoice, you should leave it without taxes, as the taxes are not yet synchronized from QBO:
When you create this invoice, you will see a spinning wheel at the top of the Invoice. It means that the Invoice is being synced from ServiceBridge to QBO.
When the synchronization is finished, you need to do the synchronization from QBO to ServiceBridge. To do so, go to Company settings, navigate to QuickBooks section and press the 'Synchronize' button:
After the synchronization is finished, you will see the new tax code in the Taxes section:
Now you can assign this tax code to the Customer that was recently created. You need to open the Customer record and press the 'Edit' button:
The pop-up window opens and now in the Default Tax dropdown you can see the new tax code:
When the tax codes are already synced to ServiceBridge, you will not need to do all these steps for the new Customers at the same territory. These steps are needed only for the first Customer of the new tax Agency.
Now as you have the tax code synced to ServiceBridge, you can fix the Invoice that was created without taxes. You need to open the Invoice and press the 'Edit' button. When the pop-up window appears, scroll down to the Invoice Items section, press the pencil icon on any Invoice Item:
Then, click the checkmark button and this will refresh the tax rate on the invoice:
After these steps are completed, it will be easier to select the tax codes. It will appear in the dropdown of the Default tax, when you create a new Customer for this territory. Also, on the invoice the tax code will be automatically pre-selected for you.
As it was mentioned before, this is a temporary workaround for the new Automated Sales Tax model and ServiceBridge is now working to provide integral Automated Sales Tax model support for QuickBooks Online.