Why do I need to add tax codes in QuickBooks?

If you have not set up tax codes for your customers or your products then you might get errors about missing tax codes. We sometimes get asked why it is necessary to add tax codes to products and customers in QuickBooks when it has always been possible to create orders manually in QuickBooks without this.

When Onsight sends an order to QuickBooks you can think of it as doing exactly what you do manually with your keyboard and mouse. Onsight creates an invoice, then it chooses a customer, then it chooses a product, and lastly it chooses a price. All of these things it can do because it has the data for these fields stored internally. That data has been copied from QuickBooks.

When you create an invoice manually and choose a tax code, you know what tax to apply to that specific line item. Onsight cannot do this. It has no knowledge about taxes the way you do. The only way for Onsight to know what tax code to use for that line item on the invoice is for you to tell it what tax code to use. The way you tell Onsight what tax code to use on the invoice is by choosing a tax code for the product (or the customer) and saving that in QuickBooks. If Onsight has no tax code to use, it gets the exact same error that you would get if you tried to save that invoice without a tax code. QuickBooks will reject the invoice.