Overview
Sharper MMS supports configuring tax rates, tax agencies, and tax codes that are applied to invoice line items. Proper tax setup ensures that customer invoices reflect the correct tax charges and that tax information syncs accurately to your external accounting system (QuickBooks or Sage Intacct).
Key Concepts
Term | Definition |
Tax Agency | The government entity that collects the tax (e.g., state revenue department, county tax authority). |
Tax Rate | The percentage or flat amount charged as tax. Associated with a tax agency and applied to invoice line items. |
Tax Code | A code used to categorize whether items are taxable or non-taxable. Often mapped directly from your accounting system. |
Setting Up Tax Agencies
Tax agencies represent the authorities to which you remit tax payments.
Navigate to System Settings → Accounting Integration (or Accounting → Tax Agencies depending on your configuration).
Click Add New.
Enter the agency's Name, Address, and Phone as needed.
Select the Accounting System Type to link this agency to your external accounting platform.
Click Save.
Setting Up Tax Rates
Tax rates define the actual percentage or amount charged to customers.
Navigate to the Tax Rates section of your accounting settings.
Click Add New.
Configure the following fields:
Field | Function |
Name | Descriptive name for the tax rate (e.g., "State Sales Tax 6%"). |
Amount | The tax percentage or flat amount. |
Tax Agency | Select the agency this rate is remitted to. |
Tax Type | Categorizes the rate (e.g., percentage, flat fee). |
Grouping | Optionally group multiple rates together for combined display on invoices. |
Click Save.
Assigning Tax Rates to Products
Tax rates are applied to invoice line items through the products associated with those items. When setting up or editing a product:
Open the product in its respective module setup.
In the product's accounting or pricing section, assign the appropriate tax rate(s).
Save the product.
All invoices generated from that product will automatically include the assigned tax.
Tax Codes
Tax codes are typically imported from or matched to your external accounting system (QuickBooks or Sage Intacct). They indicate whether an item is taxable or non-taxable.
NOTE: If you are using QuickBooks integration and encounter invoice import failures, it may be because a tax item tied to an invoice line item is not set up or active in Sharper. See the QBO Error Playbook for troubleshooting steps.
Accounting Integration Tax Behaviors
How tax configurations sync to your external accounting software depends entirely on the connected platform. Make all tax changes in Sharper, not in the external software, to avoid data mismatches.
QuickBooks Online (QBO) Sync
Tax Rates, Tax Agencies, and Tax Codes fully sync automatically between Sharper and QBO. Tax Code objects map directly to QBO Tax Codes.
QuickBooks Desktop (QBD) Sync
Tax Rates in Sharper map to Sales Tax Items in QuickBooks Desktop. Tax Agencies map to your QBD Vendor list. If a tax item exists in QuickBooks but is not yet in Sharper, import it via Accounting → Accounting Sync:
Search for Salestaximport.
Click Requeue.
Run the QuickBooks Web Connector.
Sage Intacct Sync
Sage Intacct does not sync granular Tax Code or Tax Rate objects. Tax totals are dynamically tabulated by Sharper during the invoice process and passed as part of standard Journal Entries directly to your configured revenue and tax liability G/L accounts.
WARNING: Editing tax items or rates directly in QuickBooks without syncing back to Sharper can cause data mismatches and invoice import failures.