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Join nowI couldn't find a thread with my specific issue in it. Here it goes.
We had received a new program and a new terminal from our merchant company (I know - heavy sigh). The new program allowed us to pass on our fee to the customer. In the beginning we could turn it on and turn it off (they would pay or we would pay). I was told that the merchant fees passed on to the customer was not taxable. So I created a new invoice under the customer's account just for the merchant fee and marked it as non-taxable. Now we found out it is taxable. I've added that amount to the sales tax on paper and paid the GRT on line. I know how to do a sales tax adjustment. My question is, if I just adjust the sales tax it won't effect the customer account. Is that a problem? Now the customer account shows a 0 balance but their account doesn't show the fees they paid as taxable. If I change it to taxable it will leave an unpaid balance on their account. We have since made a change to the program and don't have to deal with this anymore but I need to get May fixed.
Thanks for explaining your concern in such great detail, Stace6799. I've got you covered.
When you process sales tax adjustment in QuickBooks Desktop, you move money into or out of your Sales Tax Liability account. There are several reasons the sales tax liability is adjusted, and we've listed them in our Process sales tax adjustment article.
Since you marked the merchant fees as non-taxable, having a zero balance in your customer's account is normal. Also, whatever changes you made are only applicable to the specific sales and shouldn't affect the item or customer setup.
To adjust your sales tax, I'd suggest following the steps below:
Instead of posting the adjustment to the sales tax payable, please choose an income account if received a discount or credit, or if you're entering a negative rounding error. If you need to add penalties and fines, or if you are entering a positive rounding error, select an Expense account.
Additionally, I've included these articles that'll help learn more about managing sales tax in QuickBooks Desktop:
I'll be right here if you'll need further assistance in dealing with sales tax in QuickBooks. It's always my pleasure to help you out again.
Okay. I understand Sales Tax Adjustments. In the chaos of this mess we've had days where we had to estimate what the charge to the customer would be for the merchant fees. So we have an invoice and a receipt showing the customer paid $29.51 so the customer's account is good. However when the card was processed is was $29.48. Do I have to show that .03 difference on the customers account?
Hi there, Stace6799.
I'm here to give details to ensure that your customer account is accurate.
Yes, it needs to reflect in your customer's account. You can process a credit memo for the 0.03 difference. I'll show you how.
For your reference, you can review this resource: Give your customer a credit or refund in QuickBooks Desktop. This contains steps and helpful information to complete the refund process.
I've included this handy material about handling incorrect credit applied to invoices or bills: Remove or unapply a credit from an invoice or bill.
Would you like to learn more about managing your customer's account or other QuickBooks processes? Feel free to leave a comment below. I'll get back as soon as possible. Stay safe!
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