Rustler’s Quickbooks Tips

Took me awhile to figure out the relationship on the invoice.

Each item has a taxable status you can set (either on the invoice or set the default for it on the item screen)

The invoice total can be set to taxable, non-taxable, or any of the kinds of taxes you have set up.  If you set it to non-taxable then even if the items are set to taxable, nothing is calculated.

And then there is the customer tax code which can be changed on the invoice but is normally set on the customer edit screen on the additional info tab.

The customer tax code overrides everything.

So I suggest setting all items to taxable, and if you have a customer who does not have to pay sales tax, set that customer to non-tax and let the customer tax code override the taxable item setting.  That way when you do sell to a customer who does have to pay the sales tax, the invoice will do it right without any extra input from you.