Calculate Taxes in QuickBooks with Avalara

This article helps Webgility Desktop users in calculating taxes for orders in QuickBooks Desktop using Avalara AvaTax through Webgility Desktop. It provides guidance on how taxes are initially handled in the online store, how Avalara calculates taxes when posting orders to QuickBooks Desktop, and how these calculations are reflected in both Webgility Desktop and QuickBooks Desktop. Users will also learn how to identify and understand store tax adjustments that occur when the tax rates in their online store differ from the rates calculated by Avalara AvaTax, ensuring accurate accounting and compliance.

Before Posting to QuickBooks Desktop

Before you post to QuickBooks Desktop, double-click on an order in Webgility Desktop to view the order details.

Tax: The taxes are calculated in the online store during the purchase process.
Avalara Taxes: Before an order is posted to QuickBooks Desktop, there is no tax calculation. This area is dynamically updated once Avalara AvaTax calculates taxes in QuickBooks Desktop during the post-to-QuickBooks Desktop process.

Note: An order should be in the state where it is ready to be posted to QuickBooks Desktop so that Avalara AvaTax calculates the taxes at the correct time.

Calculate Taxes in QuickBooks Desktop with Avalara

1. Post the order to QuickBooks Desktop using Webgility Desktop. This can be done in the inbox for multiple orders. or within the order details screen.

2. Once the order has been successfully posted to QuickBooks Desktop, Avalara AvaTax will calculate the correct taxation by verifying the address on the order.

3. Avalara Taxes has been dynamically added to the order details area in Webgility Desktop.

In QuickBooks Desktop, you will see the following:

Calculated Tax: The calculated tax is displayed in the line item on the transaction.
Store Tax Adjustments: If the taxation rate in your online store is calculating taxes at a rate that doesn't match what Avalara AvaTax calculates, this will create a discrepancy either over or under the tax calculation. The discrepancy and amount will be recorded as a Store Tax Adjustment item and the amount and reason will show within the description area of the transaction. The discrepancy will adjust the total of the transaction in QuickBooks Desktop. If you see discrepancies caused by an incorrect calculation of tax in your online store, you should modify the tax percentage in the online store.