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Process sales tax adjustment

SOLVEDby QuickBooksQuickBooks Enterprise Suite26Updated 3 weeks ago

You may be required to collect taxes for certain goods and services you offer. QuickBooks Desktop helps you keep an accurate record of these taxes so you can easily monitor and remit them to the appropriate tax collecting agency.

This article is part of a series on Sales Tax. It covers the usual sales tax workflow in QuickBooks Desktop.

It also helps you complete other sales tax-related tasks.

If you encounter problems while working on your sales tax, see Resolve common sales tax issues.

Adjust the sales tax amount you owe

When you make sales tax adjustments, you move money into or out of your Sales Tax Liability account. You adjust your sales tax liability for reasons like:

  • A credit for previous over payment or early payment discount given by your sales tax agency.
  • A fine charged to you by your tax agency for late or non-payment in the previous tax year.
  • Corrections to sales in a previous period.
  • Rounding differences between QuickBooks and your sales tax forms.
  • Sales tax holiday declared by your agency.

To adjust your sales tax due:

    1. Go to the Sales Tax menu, click Manage Sales Tax and then click Adjust Tax Owing.
    2. Choose an Adjustment Date.
    3. Fill in the Entry No. field.
    4. (Optional) If you track classes, select a class for this adjustment.
    5. Click the Tax Agency drop-down list and choose the agency to which the adjustment applies, such as Receiver General.
    6. Click the Sales Tax Item drop-down list and select the sales tax item for the return line you want to adjust, such as GST Adjustments.
    7. Click the Adjustment Account drop-down list and choose an account.
    8. In the Amount section, enter the amount of the adjustment.
    9. (Optional) Enter a memo to describe the adjustment.
    10. Click OK.

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