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Sales tax adjustment not taking

My sales tax liability report is showing the wrong amount. I click "Adjust" and jump through the hoops, but when I return to the Pay Sales Tax window, the incorrect amount still appears. I've gone ahead and completed the transaction but the adjustment is not reflected in the payment amount as shown in the check register.

Best answer 12-10-2018 07:30 PM

Accepted Solutions
Active Member

Solved! I was erroneously assigning my Sales Tax Payable...

Solved! I was erroneously assigning my Sales Tax Payable (a current liability account) as the adjustment account. It requires an expense account so I created a Sales Tax Adjustment expense account. All is right with the world Smiley Happy

3 REPLIES
Active Member

Solved! I was erroneously assigning my Sales Tax Payable...

Solved! I was erroneously assigning my Sales Tax Payable (a current liability account) as the adjustment account. It requires an expense account so I created a Sales Tax Adjustment expense account. All is right with the world Smiley Happy

QuickBooks Team

Hi there, Fretking. Glad to hear that everything is fine...

Hi there, Fretking.

Glad to hear that everything is fine in your end.

Don't hesitate to post back again in Community whenever you have concerns. Have a good day!
Not applicable

I tried that and there is still a liability showing up in...

I tried that and there is still a liability showing up in "Pay Sales Tax". I wanted to reduce my sales tax liab. I used the "Adjust Sales Tax Liability". Marked the appropriate boxes.  This resulted in a journal entry that  debited Sales tax and credited my expense account "Adjust to Actual".  It lowers the amount in the sales tax payable account but it does not change the totals when you bring up "Pay Sales Tax".

Any suggestions?