I know that I haven't received payment for the two items invoiced on 2/01 (see screenshot), but when I run the Sales Tax Liability Report, I see the items listed (also in screenshot). The report is definitely set for Cash Basis, and for the month of February. And there have definitely not been any payments during the month.
Any ideas on what might cause invoiced (but unpaid) items to be included in the Sales Tax Liability Report?
I appreciate you adding a screenshot and providing extra details. I'm here to share some information on how the amount on the Sales Tax Revenue Summary report is accumulated.
I've tried running the report on my end and customizing its accounting preference. The reports provide different amounts. The accrual basis has more total amounts considering that it shows the income regardless of if the invoice is paid or not. On the other hand, the cash basis only shows the amount for invoices that have already been paid.
Make sure to select the correct accounting preference so the report will provide you the correct amounts. For your guide, you can check this article: Customize reports in QuickBooks Desktop.
If it's still showing the wrong information, you can use the QuickBooks built-in diagnostic and repair tool. It helps resolve any data issues in your company file.
Keep me posted on how it goes, kmbrown. I'm here to ensure your success in this endeavor. Just add a comment below or mention my name. Have a good one.
Thanks for the note HoneyLynn,
Take a look at the screenshot and you'll see that my report is set correctly to Cash Basis, but in spite of this, the report includes an item that's invoiced but not yet paid during the tax period (Feb, 2019)
We can look for another possibility like there are other entries that adds up to your sales tax amount, and it's not from the two-item invoice because it not paid yet.
It would be best if you'll see the list of transactions that comprise them. You can do that by double-clicking the Taxable Sales amount. Then, if you will see a transaction that isn't supposed to be there, please click to open it and check for the payments applied to them.
Please let us know what you will find out and we'll continue to find out the root cause of this.