Taxable Sales with 0% Rate

Posted by W on January 31, 2009, 11:21 pm

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We have used Quickbooks for years to pay sales tax, and we have a pretty
good procedure for doing this now. For 4Q 2008 we are getting an error
message we cannot resolve. We get a modal dialog when we run the Sales
Tax Liability report that says "Taxable Sales with 0% Rate".

The error dialog has no code on it and urges you to click the total line on
the Taxable Sales column and on the detail transaction list to "edit each of
the transactions with a sales tax item with a zero percent rate by changing
the Customer Tax code on the sales form to use a non-taxable sales tax
code."

We have one taxable invoice for the quarter, and the invoice doesn't appear
to have any errors. The one line item is coded as Tax. The freight line
item is coded as FRE, which is a custom code we set up for non taxable
freight charges. The customer tax code is entered as Tax. I am not able
to clear the error.

Does anyone have an insight about what kind of transaction might be causing
this error message?

--
W

Posted by Laura on February 1, 2009, 8:28 am

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> We have used Quickbooks for years to pay sales tax, and we have a pretty

> good procedure for doing this now. For 4Q 2008 we are getting an error

> message we cannot resolve. We get a modal dialog when we run the Sales

> Tax Liability report that says "Taxable Sales with 0% Rate".

> The error dialog has no code on it and urges you to click the total line

> on the Taxable Sales column and on the detail transaction list to "edit

> each of the transactions with a sales tax item with a zero percent rate by

> changing the Customer Tax code on the sales form to use a non-taxable

> sales tax code."

> We have one taxable invoice for the quarter, and the invoice doesn't

> appear to have any errors. The one line item is coded as Tax. The

> freight line item is coded as FRE, which is a custom code we set up for

> non taxable freight charges. The customer tax code is entered as Tax.

> I am not able to clear the error.

> Does anyone have an insight about what kind of transaction might be

> causing this error message?

QB does not seem to like having a customer tagged as taxable but having
items (freight) that are non taxable. I found it was safer to mark all
customers non taxable and properly code the items as taxable vs non taxable.

So change the customer marking in their profile. Then open the invoice in
question and resave it. Alternatively, create a new one if QB does not clear
the error caused by the existing invoice.