Does Quickbooks Online count sales tax as income on the profit and loss report or does it only count the actual sales?

No. Sales tax does not use an income or expense account and so cannot appear on your P&L.

Welcome to the Community space, @MaryG0. We'll share details about sales taxes inside QuickBooks Online (QBO).

Before anything else, please be aware that sales tax is a liability. In QBO, know that what you'll see in your Profit and Loss report is the income and expense total only. If you wish to track all your sales taxes, you'll want to run the Balance Sheet report. We'll gladly write down the steps to get you going:

1. Access your QuickBooks Online company.
2. On the left navigational bar, go to the Reports tab.
3. In the Search bar, enter Balance Sheet and choose the report you want to review.
4. Choose a specific reporting period enter the date.
5. Once you're ready, click the Run report button.

Moreover, here are some articles to help you add more details and keep your report settings for future use:

• Customize reports in QuickBooks Online.
• Memorize reports in QuickBooks Online.

If you have other questions related to QuickBooks or need assistance managing sales taxes inside the program, don't hesitate to visit us again or comment below so we can get back to you. Have a good one.

Thank you!

You're most welcome, Mary.

We're glad to share information that will help you fix your concern. Please know that assisting and providing the right resolution for our valued customers is our top priority. If you have any questions about your QuickBooks, you can always drop by and post your concerns. We'll make sure to address that as soon as we can.

Also, I added this article to your reference when checking the latest updates about the product: The QuickBooks Blog.

We're always around to help. Have a good one!

Does sales tax on an invoice only go to the liability account on the Balance Sheet or is it also included in Accounts Receivable and somewhere on the P&L?  If I'm making an adjustment to a sales tax payment because what the state said that I owe is more than what QBO says, what account should I book the adjustment to?

I appreciate you for asking, @tlehman1. Let me clear things up for you.
 
Sales tax on an invoice is a liability. It is recorded in the liability account on the Balance Sheet in QuickBooks Online. Thus, it's not included in Accounts Receivable unless the invoice is paid. Also, this is not included in the P&L.
 
When making adjustments to your sales tax payment, I suggest consulting with an accountant. They can advise what correct account to use and ensure accurate financial records. If you're not affiliated with one, you can utilize our Find an Accountant tool.

Moreover, you can run several financial reports in QuickBooks and customize it based on your preference. After customizing the report, I suggest saving the current settings by clicking Save Customization. That way, you won’t have to go through the customization process again in case you need the same information in the future.

If there are any other matters related to QuickBooks that you'd like to discuss aside from sales tax adjustments, please comment down below. The Community team is always around to answer them for you.

Thanks so much, Rainflurry!