Learn how to troubleshoot issues or unexpected results you may encounter while managing your sales tax in QuickBooks Desktop.
Details: Invoice prints “T” next to taxable amount even though the sales tax feature is turned off
Possible reason: Damaged invoice template
Quick Tip: You need to recreate your invoice template.
Recommended solution: Intuit recommends more than one solution for this problem. The first solution may solve your problem, or you may need to try all of them to resolve the issue. For best results, perform the solutions in the order shown.
Quick Tip: Always use the Pay Sales Tax window. Do not use Write Checks when recording a payment for sales tax.
Recommended solution: If you are using QuickBooks Accountant or Enterprise Accountant, use Client Data Review. For all other QuickBooks editions, follow these steps:
Quick Tip: You need to enter a vendor name in the Customer: Job column when you create a journal entry or write a check that uses sales tax payable account.
Details: Your cash basis Balance Sheet shows a negative amount for sales tax payable indicating that the state/province owes you money.
Possible reason: If you pay sales tax at the end of the month, you can pay in the month when you create the invoice (accrual basis) or the month when you are paid for the invoice (cash basis). You would likely see a negative balance for the Sales Tax Payable account in the Balance Sheet report if you pay on accrual basis and run the report on cash basis.
Quick Tip: You need to ensure that QuickBooks is set to the proper basis. Note that you may need to consult your accounting professional and the Department of Revenue/Canada Revenue Agency to ensure you are paying your sales taxes on the correct basis.
To set Sales tax basis in QuickBooks:
Quick Tip: When a Sales Tax Item is set to Inactive, it is not removed from the assigned Sales Tax Group. Inactive sales tax items must be removed from the Sales Tax Group so the active sales tax items can be applied properly.
Note: If there are invoices that were already created using the Sales Tax Group with the previous Sales Tax Item, this change will not affect how those invoices were calculated.
Details: You create a Credit Memo from an invoice or from the Customers menu and you receive a warning that says "Error."
Possible reason: The invoice includes a sales tax item and Sales tax setting has been turned off in the company file.
Quick Tip: To properly create the Credit Memo, you need to turn on Sales Tax, create the Credit Memo and then turn off Sales Tax again:
Details: You are deleting a sales tax item and you get the error "Warning, this item is used in a customer data. It cannot be deleted."
Possible reason: The sales tax item(s) you are trying to delete are assigned to at least one customer on the Additional Info tab of the Edit Customer screen.
Quick Tip: If the sales tax item has not been used on a transaction and is not assigned to any customer, you can delete the item.
To remove the sales tax item from your customers using the Customer Contact List report:
Quick Tip: In order for Sales Tax to print as an individual line item on an Invoice there must be a description in the description field of the Sales Tax item in the Item List.
To add description to the sales tax item:
Details: Paying Sales tax in the Pay Sales Tax window and selecting a sales tax item and a discount that was entered in the Sales Tax payable register gives you the message "Your existing credit with [vendor name] is sufficient to pay your sales tax. A check will not be written for this vendor."