Applying discounts before taxes is a common business practice. ServiceBox applies discounts before taxes by default, which can lead to discrepancies when syncing with QuickBooks Online (QBO), as QBO gives clients the option to apply discounts either before or after taxes. This article provides detailed instructions on how clients can adjust their QBO settings to ensure discounts are applied before taxes, matching the ServiceBox configuration.

Adjusting Discount Settings in QuickBooks Online

By default, QuickBooks Online calculates sales tax after applying discounts. However, you can adjust this setting on individual invoices or sales receipts. Follow the steps below to modify your settings:

  1. Create or Edit an Invoice or Sales Receipt:

    • Navigate to the invoice or sales receipt you want to modify.

  2. Access the Discount Feature:

    • If you're using the new layout:
      • Click on the gear icon labeled "Manage" within the invoice or estimate.
      • Select the "Payment options" dropdown.
      • Ensure the "Discount" setting is turned on to add the discount field to your form.
    • If you're using the old layout:
      • Ensure the discount feature is enabled in your sales form settings.

  3. Apply the Discount:

    • Enter your products or services in the appropriate columns.
    • To record a discount, choose between "Discount percent" to enter the discount as a percentage or "Discount value" for a specific dollar amount.

  4. Set the Order of Discount and Tax Application:

    • To apply the discount before calculating sales tax, click the double arrow icon next to the discount field. This action switches the order, ensuring the discount is applied prior to tax calculation.

  5. Save the Form:

    • After making these adjustments, save your invoice or sales receipt.

By following these steps, you can ensure that your discount application settings in QuickBooks Online match those in ServiceBox, thereby eliminating any discrepancies in tax calculations.

For further assistance or inquiries, please reach out to our dedicated support team at support@jobboxsoft.com.

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