Note: Tax rates mapping only applies to non-US QuickBooks accounts. Taxes are applied automatically for US QuickBooks accounts.
During the initial connection of QuickBooks to Katana, you are asked to map Katana Tax Rates to QuickBooks taxes. This ensures that taxes are accounted for correctly in QuickBooks when creating invoices and bills in QuickBooks based on Katana Sales and Purchase Orders.
This is the tax mapping screen:
Mapping all Katana Tax Rates to QuickBooks taxes is required, the "Done" button is disabled until all the required fields are filled.
You can create new Katana Tax Rates on this screen if needed. To delete existing Tax Rates that you do not need in Katana and would not like to map to any QuickBooks taxes, you need to exit the QuickBooks integration flow (just close it from the "X" button at the top right corner) and navigate to the "Tax rates" page in the "Settings" screen in Katana. You then need to start your QuickBooks connection from the beginning.
- Katana does not differentiate between sales taxes and purchase taxes, you can add any Tax Rate to any Sales or Purchase Order. If you need to apply different Tax Rates for purchases and sales for the same tax type, you should create 2 Tax Rates in Katana (one for purchases and one for sales). Then map both of those taxes to the same tax in QuickBooks. QuickBooks will apply the correct tax based on the transaction (a sales or a purchase).
- In Katana, you can choose to add "No tax" to a Sales or Purchase Order line. During the initial connection of QuickBooks and Katana, a new tax called "No tax" with 0% rate will be created in QuickBooks and the respective Katana "No tax" rate is mapped to this new rate in QuickBooks automatically.