Tax descriptions allow you to create and manage various tax rates that reflect the specific requirements of your business. You can customize these descriptions based on the regions or types of taxes relevant to your operations, enabling accurate and efficient application of tax rates across your system.
View Setting
➡️ Profile Icon > Settings > Finance > Tax Descriptions > View
Set Up a New Tax Description
➡️ Tax Descriptions
In the form on the left, select the State (or relevant category).
Enter a Title for the tax description.
Click Add Tax Description to save it.
The new description will appear in the list on the right.
Click Add Tax Rate.
Select any Tax Components that define your tax descriptio
e.g. state tax, city tax.
Assign specific Percentages to each component as needed.
Review and Save
Check that the Total Tax Rate matches the required rate.
Click Add Tax Rate to save the description and its components.
Linking Tax Descriptions with Accounting Packages
QuickBooks Desktop
If you're syncing your complex tax descriptions with QuickBooks Desktop, it's essential that the Tax Description Title in Commusoft matches exactly with the Sales Tax Name in your QuickBooks Item List.
To ensure a successful sync:
Use the exact Sales Tax Item name from QuickBooks (case-sensitive).
Set up each tax component (e.g., state tax, city tax) clearly in Commusoft.
The total tax rate must match what is defined in your accounting system.
To fix an invalid Tax error
"There is an invalid reference to QuickBooks item Sales Tax 'Sales' in the Invoice. QuickBooks error message: Invalid argument. The specified record does not exist in the list."
"There is an invalid reference to QuickBooks item Sales Tax 'Sales' in the Invoice. QuickBooks error message: Invalid argument. The specified record does not exist in the list."
Follow these steps:
Confirm the Sales tax used by viewing the invoice in Commusoft
Click Edit
Locate the Tax description; our example will be Sales
Open QuickBooks Desktop and go to Lists > Item List.
Locate and double-click the Sales Tax Item that should match your Commusoft tax description.
Copy the exact Sales Tax Name from the item (capitalization and spacing must match).
In Commusoft, go to Profile icon > Settings > Add Tax Descriptions and search for the description.
Click Edit, paste the copied name into the Tax Description field, and click Save Tax Description.
Profile icon > Settings > Integrations > Accounting Interfaces > Failed, find the failed invoice, and click Resend.