This article explains how sales tax, down payments, and invoicing works with SynkedUP and QuickBooks Online integration for Canadian users.
So the workflow works like this:
You send a proposal to the customer, and let's assume you turn on the Auto-Submit Down-Payment Invoice upon Customer Approval toggle.
The customer gets the proposal and approves it in the Customer Portal.
Because the Auto-Submit Down Payment toggle was on, the customer immediately gets a follow-up email with the invoice for the down payment. This gets generated from QBO. For Canadian users, sales tax gets applied and collected on this down payment invoice.
As soon as the customer pays that down payment invoice, the job automatically gets marked as Sold (the toggle on the Details tab of the job).
Let's now assume you complete the project and now you are ready to invoice the customer for the final payment that is still due.
You go to the invoicing tab of that job.
You create an invoice, and you notice there is an alert message notifying you of the down payment and sales tax already collected, and it will get deducted off this final invoice total.
Note: This will only happen if that down payment invoice has already been paid. If the down payment invoice has not been paid yet, it will not create this deduction and will invoice for the full amount automatically.
When you open that invoice in QBO, you see that it took that previously paid down payment invoice and deducted it off this final invoice.
Ways this could behave not as desired:
If you create a down payment, and then immediately create the final payment invoice before the down payment invoice got paid, then the system will see that the full amount is still due, and produce a final invoice for the full amount with sales tax calculated on that full amount. If your customer later paid both the down payment invoice and the final invoice, they could both overpay you and overpay on sales tax as a direct result.
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