You can use a sales tax exception to track changes to your taxes and returns.
What are exceptions?
When preparing Sales Tax returns, you may see a column titled Exception Amount. The amounts in this column represent transactions you have previously filed for, but have since changed, deleted or added. This is to ensure that no sales tax collected (or credits earned) is missed or duplicated.
View transactions that contribute to exception amounts
To view the exceptions that are pending for the current filing:
- Select Taxes from the left menu
- Select Sales Tax at the top. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax)
- Next to Sales Tax at the top, find the tax agency associated with the return you'd like to prepare the return for using the drop-down
- On the Returns tab, locate the tax you're going to file
- In the Action drop-down, select View exception details
- This will give you the line by line, transaction by transaction detail for your exceptions
Why do some exceptions cancel out and look to be for the same transaction?
If you delete and recreate a transaction for a previous period, then both changes will show as exceptions, but will net out to zero. This is also caused by editing and saving a transaction, even if the line item in question was not changed. This is perfectly normal and should not affect the balance of your filing.
I need to change the amount of my filing in QuickBooks. I understand where the exceptions are coming from, but are there any other factors that need to be accounted for?
When filing your return, use the Adjust link on the far right of the line to increase or decrease the amount as necessary. Pay special mind to the adjustment account that you select, and, if necessary, consult an accounting professional to ensure that your chart of accounts is correct after the adjustment.