QuickBooks does not offer you the option to include a tax on Purchase Orders or Vendor Bills.

Taxable items on a Purchase Order going from Ivy to QuickBooks do not appear taxed on the Purchase Order/Vendor Bill in QuickBooks, and that tax is not registered on the QBO reports. 

In order to track a tax that was paid to the vendor, a line item was needed to be added manually with the value of the tax. 

In an effort to provide you with a more seamless process, we introduced a new tax tracking capability. Tax will automatically be converted and managed behind the scenes into a line item in QuickBooks.

This sales tax is mapped by default into a “Cost of Goods Sold” expense account in QuickBooks called “IVY Sales Tax Paid to Vendor” but you can assign it to any expense account you have on QuickBooks.

Tax will appear in QuickBooks under the Purchase Order/Vendor Bill as a new line item titled “Sales Tax Paid to Vendor”. In the description field of that item, all the items for which tax was paid are listed to allow easy tracking.

In order to maintain consistency - we’ve instantiated this new tool only on purchase orders that were created starting July 1st, so older Purchase Orders will not be affected by it.

The Quickbooks sync status has also been changed to give you better tracking when a Purchase Order has been reported with tax - if you see the “Synced with Tax” label it indicates that a line item was created for that Purchase Order / Vendor Bill in Quickbooks.

For questions about this change please contact support@ivy.co