Thanks for visiting the QuickBooks Community, @missmissySEI. Allow me to outline the steps on how to properly record sales tax payments with discounts in QuickBooks Desktop (QBDT).
To enter an early payment discount given by a sales tax agency, you'll need to create an adjustment to move money out of your Sales Tax Liability account. That said, I recommend deleting the transactions you've entered so we can start fresh.
First, adjust your sales tax due. Here's how:
- Go to the Vendors menu, select Sales Tax, and click Adjust Sales Tax Due.
- Enter the Adjustment Date, Sales Tax Vendor, Adjustment Account, and other relevant information. Be sure not to use Sales Tax Payable for the adjustment account. Choose an Income account since you're making an adjustment because of the early payment discount.
- In the Adjustment section, select Reduce Sales Tax By and enter the Amount.
- Enter any additional note in the Memo field (Optional).
- Click OK.
For more details, please see this article: Process sales tax adjustment.
Furthermore, you can run reports in QBDT to track how much sales tax you owe.
Fill me in if you have additional questions about sales taxes. I'll be happy to provide further assistance. Stay safe, and have a great day ahead.
