How do I handle price/tax changes on the same item.

We appreciate you reaching out to the Community, 12345CP.

Let me share information on handling sales for the same item with a different tax rate when purchased.

There are instances when you can buy the same items from different vendors with different tax rates. It has to be noted accordingly in QuickBooks, ensuring accurate tax calculations to prevent related issues in the future.

In your case, you've mentioned that some items purchased from a vendor are taxable, and the same items are non-taxable when purchased from another vendor. With this, you can separate the same items with different tax rates in an invoice/sales receipt by adding them as separate line items.

Here's how:

1. Click on the +New icon, then Invoice/Sales receipt.
2. Select the client from the Customer dropdown.
3. Add the item and enter the QTY depending on the items you need to sell that are taxable when purchased. You can also modify the Rate or Amount if you need to adjust them.
4. Add the same item in the second line item and adjust the QTY depending on the number of items you need to sell that are non-taxable when purchased. You can update the Rate or Amount if necessary.
5. You can check the Taxable box for items you need to collect sales taxes. This way, QuickBooks can determine which item is taxable or non-taxable.
6. Determine how you would like to save the entry.

On the other hand, can you tell us what you mean by "some was paid already"? Were you the one who paid the item to your vendor, or you're paid by a customer? These details can help us identify the most appropriate resolution.

Moreover, you might want to scan these resources to have an overview of your business finances:

• Run reports in QuickBooks Online
• Customize reports in QuickBooks Online

Get back to us in the forum if you have additional questions regarding handling the same items with different tax rates or other related concerns in QuickBooks Online. We're here to help.

I think you've misunderstood. I'm saying it's the same item and depending on where I purchased I may or may not be setup to purchase items tax exempt for resale. So I've paid tax on some but not all I have in inventory.  When I pay sales tax to the state I would think I'm not liable for sales tax I've already paid on a resale item.  Therefore I need to remove the portion I've already paid.  The only thing I can think to do is track this on my own and remove it manually when I submit sales tax payments to the state unless QuickBooks can actually tell the difference.  I do not want to create additional items in QuickBooks each time there's a change in price or sales tax.

Hello there, @12345CP.

I agree with your possible solution since QuickBooks will only determine the non-taxable and the taxable items if they were entered as separate line items by ticking and unticking the tax column when creating an invoice. 

Moreover, I'm adding this article as your reference in recording invoice payments in QBO: Record invoice payments in QuickBooks Online.

Return to this post if you have other concerns about your taxable and non-taxable items in QuickBooks Online. The Community is always here to help.