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Experienced Member

How Do I Enter A Credit Memo From A Tax Agency?

A client just received a credit memo from the FL Department of Revenue for an amended Sales & Use Tax Return, which generated a credit due to the business for overpayment.  How does that get entered into Quickbooks Online? 

 

Since regular Credit Memos apply to customers and not Vendors/Payees, I have it currently entered as a Vendor Credit; however, this is not decreasing the Use Tax Payable Other Current Liability account and is giving a "false" report of the Accounts Payable total.

 

Thanks!

1 Comment
QuickBooks Team

Re: How Do I Enter A Credit Memo From A Tax Agency?

You can record the credit amount as a tax adjustment, HYE Consulting.

 

Let me show you how:

  1. Go to Taxes, then choose Sales Tax.
  2. Choose your sales tax due for this month, then click View return,
  3. Click +Add an adjustment.
  4. Enter the Reason, Account and Amount.
  5. Click Add.

Once done, your sales tax liability is adjusted. Just refer to your sales tax liability report for the amount due. There's no need for you to create a credit memo.

 

Also, you can check this article about: Manage Sales Tax Payments

 

Let me know if you have other questions. I'll be here to help you.