Negative values on sales forms

Learn how negative values on your sales forms affect the Sales Tax Liability Report.

QuickBooks Online can use negative values for sales forms like invoices and sales receipts. This accommodates the workflows of some customers. But, if you use QuickBooks Sales Tax, a negative value on a sales form can affect the Sales Tax Liability Report:

• Your gross sales figure will be reduced by the negative amount used on the sales form.
• If you’ve made the line with the negative value nontaxable, then your nontaxable total will be reduced by the negative amount.
• If you’ve made the line with the negative value taxable, then your taxable total will be reduced by the negative amount.

If you need negative numbers on a sales form, there might be a better way:

• Apply a discount. You’lll have the option to apply the discount before or after sales tax. 
• Pay or partially pay an invoice.
• Use other transactions such as credit memos or refund receipts.
• Create a nontaxable transaction with a customer exemption, map your item to a nontaxable tax category, or uncheck the tax box.

If you continue to use negative values on your sales form, then you’ll need to make adjustments to the figures before filing with your tax agency.