Aphylis
Moderator

Taxes

Hi @chris6,

 

You are correct that you will be crediting the Liability account as this will increase and offset the tax payment made previously.

 

As my colleague  @HoneyLynn_G provided, that is a Tax Liability payment transaction type but the tax credit is entered as negative value, this only means the Transaction Journal will be on the Credit side.

 

Feel free to let us know if you need further assistance.