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Active Member

How can I record an adjustment for B&O tax to January when I don't owe any sales tax so there is no line to select?

Normally I add it as an adjustment to arrive at the total paid amount, but can't select a line that isn't there.
5 Comments
QuickBooks Team

Re: How can I record an adjustment for B&O tax to January when I don't owe any sales tax so t...

Thank you for visiting the Community, @wkenzb4me.

 

Let me give you a few ways to record your tax adjustments in QuickBooks and guide you on how to perform each of them.

 

If you’re referring to your sales tax adjustment, you can adjust it from your Sales Tax Center. Feel free to follow these steps:

  1. On the left panel, click on Taxes
  2. Choose Record Tax Payment.
  3. Enter the necessary information.
  4. Tick on the Make Adjustment box.
  5. Enter the Adjustment Amount, Reason, and Account.
  6. Click on Record Tax Payment.

But if you’re referring to an adjustment on your B&O tax, you can create a Journal Entry. Here’s how:

  1. Click on the Plus (+) icon, choose Journal Entry.
  2. Tick the Is Adjusting Journal Entry? box.
  3. Enter the necessary information.
  4. Click on Save and Close.

Also, I recommend seeking help from your accountant about recording your tax adjustments. This way, he/she can give you the best advice about the adjustments on your taxes and the designated accounts.

 

Please let me know if you’re referring to something else or if you have any other concerns. I’ll be here to help. 

Experienced Member

Re: How can I record an adjustment for B&O tax to January when I don't owe any sales tax so t...

I am having the exact same problem. The Sales Tax Center used to show all tax agencies and all months under Sales Tax Owed.  Now, because I have not had any sales tax liability so far this year, nothing shows there for "current year."  The only "agency" listed is "Original Sales Tax" and the "Record Tax Payment" option is grayed out.  If I select "previous year" I can see my tax agency and all months, even months with no tax liability.  This is a problem because I need to enter a late filing fee.  I've never had an issue with this until this year. I could always select the agency, select the month, and enter an adjustment for late fees.

QuickBooks Team

Re: How can I record an adjustment for B&O tax to January when I don't owe any sales tax so t...

Hi there, @tjkirk,

 

The Record Tax Payment is grayed out since you have no sales tax owed this year.

 

The amount showing on the Original Sales Tax Payable is the tax you owed last year. To resolve this, you can toggle to the previous year and record your payment.

 

You can also write a check however, it will not appear in the recent sales tax payments table below. What you need to do is edit each transaction that is part of the Original Sales Tax Payable amount. For each transaction you'll need to:

  1. Remove the current sales tax Line item.
  2. Select the replacing sales tax item as the bottom of the invoice.
  3. Click Save.

Once transactions are re-associated, you need to make a journal entry. This is to move the liability from the current sales tax liability account to the original liability account.

 

To learn more on how to record sales tax payments, you can go through this article: Manage sales tax payments.

 

That will fix this right up. Let me know how everything goes by leaving a comment below. I'm always around whenever you have follow-up questions.

Experienced Member

Re: How can I record an adjustment for B&O tax to January when I don't owe any sales tax so t...

Thank you for your reply, but my concern is not with the Original Sales Tax line.  My issue is that the Sales Tax Center used to show all tax agencies and all months under Sales Tax Owed.  Now, because I have not had any sales tax liability so far this year, nothing shows there for "current year."  I can't see my sales tax agency and the "Record Tax Payment" option is grayed out.  If I select "previous year" I CAN see my tax agency and ALL months, even months with no tax liability.  This is a problem because I need to enter a late filing fee for March, even though there was no tax due.  I've never had an issue with this until this year. I could always select the agency, select the month, and enter an adjustment, even for months with no tax liability. Now I have no way of recording this late fee through the Sales Tax Center.  I guess my only option is a journal entry.  I included a screen shot to show the difference between the current year view, and last year view

QuickBooks Team

Re: How can I record an adjustment for B&O tax to January when I don't owe any sales tax so t...

Thanks for getting back to the Community, tjkirk,

 

I'm here to provide information about recording sales tax payment in QuickBooks Online.

 

For now, the option to record payment is unavailable if you have no tax owed. To help resolve the problem, you can create a Journal entry for the late filing to adjust liabilities.

 

For assistance in creating a Journal entry, you may wish to contact your Accountant. They can provide more expert advice about this to make sure your books are recorded correctly.

 

As always, if you have any other questions, feel free to visit the Community again. Have a great day!