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Why is an exemption not applying in QuickBooks?

Overview

You have a customer with an exemption on their customer profile in QuickBooks, but the transaction is being processed as taxable, and you see the exemption information is not showing on their sales in the admin console.

Environment

QuickBooks

Resolution

  • This issue occurs if the customer was updated after the invoice was initially created, to force the current information to apply to the sale:
    • Open the invoice in QuickBooks
    • Choose a different customer (on the invoice)
    • Save
    • Choose the correct customer (this brings in all current information)
    • Save - note tax calculation uses the new customer information

 

  • When using Jobs, if the customer record has both an Entity Use Code and Exemption Number
    • In case of Entity Use Code, make sure customer type (Entity Use Code) is added in Additional Info of Job as well as customer
    • In case of Exemption No. make sure you add exemption Number details in customer before creating Job inside same customer

Note: If no exemptions in QuickBooks are working in tax calculation, check your account Exemption Certificate Options to ensure they are not set to Required in the Admin Console: Go to Settings Exemption Certificate Options > set to Optional > Save

 

 

 

 

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