Zamp for Quickbooks Online: Invoicing and Refunds

Calculating Transactions with Zamp

Certain events in QuickBooks Online can trigger a sales tax calculation. Zamp evaluates factors such as your account configurations, the purchasing entity’s address, and the line-item details in the transaction. The result is a tax-due amount that is added as a line item on the final invoice.


Zamp's integration with Quickbooks supports tax calculations on Invoices, Recurring Invoices, Estimates, Sales Orders Sales Receipts, and Credit Memos.


Any edits or cancellations to a transaction record can also trigger a new sales tax calculation event. For example, if you make multiple edits to an invoice, Zamp will automatically update the latest version of that invoice for posting to your Zamp account. This ensures that QuickBooks Online and Zamp remain synchronized on the sales tax liability amounts owed to each state.


Note:

If you attempt to create an invoice that is in a period that has already been filed by Zamp, the date of the invoice will be automatically (by Zamp) moved to the current date. This is to ensure the returns being filed reconcile with what is in the Zamp database.


Reach out to your Zamp representatives if you have questions or concerns about transactions in a past period.


Calculating Sales Tax on Invoices

  1. Create an invoice as you normally would, by selecting a customer and adding line items to the sale.
  2. Ensure the following:
    1. Zamp (0%) is selected from the dropdown under Select sales tax rate.
    2. If your product has varying taxability requirements, follow the instructions here to set up your product tax codes.
    3. If your customer is exempt, ensure you follow the instructions here.
  3. Save & Close the invoice.

  4. A "Sales Tax calculated by Zamp" line item will appear on the final invoice and be added to the total:

Note:

If you aren't seeing sales tax calculated, you may need to manually refresh the invoice page, or it's due to one of the following reasons:

  • The customer is tax-exempt.
  • The products/services sold are tax-exempt.
  • The customer is in a state where you do not have sales tax nexus (no sales tax liability).
    • Check your Zamp account to ensure the state is configured as taxable.
  • The invoice address does not include a 2-letter state abbreviation (e.g., 'OH' instead of 'Ohio') or a 2-letter country code (e.g., 'US' instead of 'United States').

Recurring Invoices


The Zamp Tax app for QuickBooks Online supports automatic sales tax calculation and transaction reporting for recurring invoices, commonly used for monthly subscriptions or SaaS (Software as a Service) billing.


To set up a recurring invoice that’s supported by the Zamp Tax app, follow the steps below.


  1. Set up a new invoice as you normally would, and Save and close the invoice. This ensures Zamp will calculate sales tax for you:

  2. The Recurring payment settings will support the recurring billing terms you have for your customer(s):

  3. Save the invoice.
  4. Recurring invoices can be identified in your Sales page by the recurring icon next to the invoice date field:

Refunds and Credit Memos

The Zamp Tax app for QuickBooks Online supports Zamp tax calculations and posting for refunds and credit memos.

Posting Refunds and Credit Memos

  1. Create either a Credit memo or a Refund receipt as you normally would, and select a customer and add line items to the sale.
  2. Ensure the following:
    1. Zamp (0%) is selected from the dropdown under Select sales tax rate.
    2. If your customer is exempt, ensure you follow the instructions here.
  3. Save the credit memo or refund receipt.

Within Zamp, these credit memos or refund receipts will generate a new transaction. These transactions will be prepended with:

  • CM- for credit memos.
    • Example: "CM-12345"
  • RR- for refund receipts.
    • Example: "RR-12345"

These transactions will have a negative total, as they are offsetting the original transaction.

Transaction Posting to Zamp

When the Sync transactions with Zamp setting within the Zamp Connector App is enabled, the integration will post all orders regardless of your nexus status to Zamp.

With the sales data that’s synced to your Zamp account, on an ongoing basis we’ll provide a holistic view of economic nexus exposure, and notify you if you’re approaching or have reached a new threshold based on each state’s specific rules. 

State registrations are also included in our service, so you can simply approve Zamp to get state sales tax accounts set up when and where you need to be compliant.