QuickBooks Sales Tax Payable is Wrong

Most States have some or other form of sales tax that is levied on businesses concerning a lot of things. Thus, small firms face the obstacle of sticking to the local and out-of-state sales tax guidelines.

Sales tax guidelines need companies to trace the taxable and non-taxable sales distinctly.

At the same time, the companies may even calculate tax on every transaction and then report brief reports or summaries of each of them on every periodic sales tax return.

In this case, it has enabled all the business managers to flawlessly manage all of their sales tax reporting needs in a sole accounting system and it also provides the user the capability to adjust all the sales tax dues.

How to Record a Sales Tax Payment in QuickBooks

To record a sales tax payment in QuickBooks, follow these steps:

• Go to the “Lists” menu and select “Taxes.”
• Select the sales tax liability account that you want to pay.
• Click on the “New Transaction” button, and choose “Pay Sales Tax.”
• Fill out the form that appears, including the date of the payment, the amount being paid, and the check or payment method used.
• Click “Save & Close” to record the transaction.

Alternatively, you can also go to the Vendor Center > Select the Vendor(tax agency) > Pay Bill
and then record the payment.

how to find quickbooks desktop payable sales tax report

To find the payable sales tax report in QuickBooks Desktop, follow these steps:

• Go to the “Reports” menu and select “Vendors & Payables.”
• Select “Sales Tax Liability.”
• Select the appropriate date range for the report and any other desired filters.
• Click on “Refresh” to generate the report.

You can also customize the report by clicking on Modify Report > Display tab > checking the columns you want to see on the report

You can also use the ‘Sales Tax Payable’ account from the Chart of Accounts to see the current and historical balances of the sales tax liability account.

How to Resolve The Incorrectly Recorded Sales Tax in QuickBooks?

What Will It Rectify?

The process of rectifying the sales tax errors will classify as well as modify all the non-sales-tax payable type transactions which are used to pay sales tax liability with the help of a Void and Replace operation.

The function will classify any Write Checks transactions exactly where the payee is similar to an allocated payee for any sort of sales tax item. This particular function will not classify any vendor bill payment checks as well as vendor bills. Also, journal entries are saved payments for a Sales Tax Liability.

In case, this is the first erroneously recorded sales tax transaction modification, you might want to alter the “to” date to contain today’s date. This will make sure that you are watching over all sales tax payment transactions which were earlier indecorously recorded with the help of the incorrect transaction in QuickBooks.

adjust sales tax payable in quickbooks desktop

1. First you select the seller menu and sales tax and then adjust the sales dues.
2. in the sales tax adjustment window
   • Enter the Adjustment Date, Sales Tax Vendor, Adjustment Account, and other relevant information.
     Note: Do not use the sales tax payable for the adjustment account. If you are adjusting and you have received an exemption/credit or if you are entering a negative rounding error, then you have to select the Income account. If you’re adjusting and you need to add penalties and fines or you are entering a positive rounding error, then you have to select an expense account.
   • Now in the Adjustments section, select whether you have a sales tax increase or decrease, then enter the adjustment amount.
   • (Optional) Enter any additional notes you want in the Memo field.
   • After that click on OK.

how to fix quickbooks sales tax liability report incorrect

To fix this issue compare the sale tax liability report and profit & loss standard reports:

Sales Tax Liability

• Select Vendors & Payables > Sales Tax Liability from the Reports menu.
• Open the Sales Tax Revenue QuickZoom report by double-clicking the Total for Total Sales column.
• Choose Customize Report.
• Decide whether to report on accruals or cash.
• Select the date range for the report under the Display tab.
• Choose Accounts from the Filters tab.
• Select All ordinary income accounts from the drop-down menu.
• Under the Filters tab, select Transaction Type and select Multiple Transaction Types.
• Check all transaction types except Invoices and Sale Receipts in the box that opens.
• To return to the Filters window, select OK.
• To return to the report, select OK again.

Profit and Loss Standard

• Choose Company & Financial > Profit & Loss Standard from the Reports menu.
• Click on Total Income twice.
• Choose Customize Report.
• Select the correct report basis, accrual or cash.
• Select the same date range on the Display tab.
• Choose Accounts from the Filters tab.
• Select All ordinary income accounts from the drop-down menu.
• Choose Multiple Transaction Types from the drop-down menu under the Filters tab.
• Check all transaction types except Invoice and Sale Receipt in the box that opens.
• To return to the Filters window, select OK.
• To return to the report, select OK again.

FAQ

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