How to Accurately Record Sales Tax from Sales Channels into QuickBooks Desktop
This guide helps Webgility Desktop users accurately record sales tax from their sales channels into QuickBooks Desktop. It outlines a recommended basic setup for businesses not using the QuickBooks Desktop tax engine, simplifying tax tracking across multiple sales channels, product types, and jurisdictions.
Step-by-Step Instructions to Configure Sales Tax Settings
1. Navigate to Sales Tax Settings in Webgility
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Open Webgility Desktop
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Go to: Connections > Accounting/POS/ERP > Sync Settings
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Click on the Sales Tax tab
2. Enable “Record Sales Tax as a Line Item”
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Check the box: “Record Sales Tax as a Line Item in QuickBooks”
This option:
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Bypasses the QuickBooks tax engine by using fixed line items
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Ensures the sales tax collected in your sales channel (e.g., Shopify, BigCommerce) matches exactly what’s recorded in QuickBooks
Note: This is especially useful if your tax rates are managed in your sales channel instead of QuickBooks.
3. Select Your Taxable Sales Tax Item
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Under “Select a Sales Tax Line Item,” choose the item used to record taxable sales
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This line item must already exist in QuickBooks
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You can find it under Item List with the type: Other Charge
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4. Select Your Non-Taxable Sales Tax Item
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Under “Select Your Non-Taxable Sales Tax Item,” choose the item used for non-taxable or tax-exempt sales
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This is necessary to complete transaction mapping, even if no tax is collected
5. Configure Mixed-Tax Goods Settings (Optional)
If your business sells both taxable and non-taxable products:
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Check the box: “I sell both taxable and non-taxable items”
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Select appropriate line items for both Taxable and Non-Taxable products