Rustler’s Quickbooks Tips

If you want to sell at a price that includes your sales tax, it can be done. QB doesn’t have a button to do it, but here is one way.

What you want to do is discount the price received so that the selling price + sales tax = received price (if that makes sense)

If your tax rate is 8.25% as mine is
(8.25% = .0825).
so

You add the decimal to one and get 1.0825, then …
You divide 1 by 1.0825 = .9237875

That is your constant (what I am going to call it anyway for this discussion).

If you multiply that constant by the $10 received you get $9.24 (rounded up)

$9.24 * 8.25% (9.24 * .0825) = 0.76 (the tax on the sale)
$9.24 + 0.76 = 10.00

What this did was prove that the tax can be calculated correctly with the constant just for your own peace of mind knowing it works.

So now you subtract the constant from 1 to find what the actual discount rate is. A discount rate is basically how much you reduce the price.

1 - 0.9237875 = 0.0762125

0.0762125 is the decimal representation of 7.62125%

So what you do is set up a price level called something like “includes tax” and when you mark an item in the list (mark all in this case) and where it says to reduce all prices by, enter the percent 7.62125 (do not round the decimal).

Then when you sell something make sure you select this price level and tax will be included in the total price that you advertised. Tax will show up in the tax box, and if you have sales tax set up correctly it will go to sales tax payable.

What the customer sees is a reduced price for the item and the sales tax, when added together they equal the advertised price.