If you create a completely taxable invoice and receive a partial payment then sales tax amount shows on the month when you receive the partial payment. QuickBooks applies the payment to the taxable sales and then reverse calculating the sales tax to be paid.
- Taxable Invoice amount: $1000
- Payment amount: $200
- Sales Tax rate: 8%
To calculate the taxable sale amount, divide the payment collected by 100 plus sales tax rate and then multiply it by 100.
$200 (payment) / 100 + 8 (tax rate) x 100 = $185.19 (Taxable Sale)
To calculate the tax amount, subtract taxable sale from the payment amount.
200 (payment) - $ 185.19 (taxable sale) = $14. 81 (Tax Amount)
NOTE: If there are several partial payments, you can add up all payments made against the invoice and use the same formula for calculating the total amount of taxable sale and tax collected.