Sales Tax Posting

It seems your sales tax amounts are posting to the wrong GL accounts—taxes meant for Erie County are appearing in the Alleghany tax account, @ChrisMc29. While your invoices and receipts display the correct tax account and rate, the GL sales tax payable accounts you’ve set up for counties won’t impact how QuickBooks posts the tax amounts unless you’ve manually created the sales tax as a service item, assigned the GL sales tax payable account as the income account, and added this service item to each invoice.
 

Could you also provide more details on how you’ve been using the Erie County payable account to post invoices and receipts tax amounts in QuickBooks Online (QBO)? Understanding your process will help us identify why the tax amounts are posting to the Alleghany sales tax payable account instead of Erie County.
 

In the meantime, to determine the cause of why it was posted to the wrong account, here are some steps to help identify and resolve the issue:
 

1. Check Your Sales Tax Settings in QuickBooks Online
   
   1. Go to My Apps > Sales Tax > Sales Tax Settings in QBO.
   2. Keep in mind that Erie County sales tax payables are posted to the "New York Department of Taxation and Finance" agency, which is also the default account used by the system. If you’re using a custom tax rate, go to the Custom Rates section and click Edit under Action to check if it’s assigned to the correct tax agency account. If it’s incorrect, you won’t be able to change it to the correct agency. Instead, make the rate inactive by clicking the dropdown button beside Edit and then selecting the dropdown beside Add agency to create a custom agency tax rate. Be sure to update previous invoices and assign the new custom agency tax rate to ensure accuracy.
       
2. Run the Sales Tax Liability Report
   
   1. Go to Apps > Sales Tax > Overview > Reports > Tax Liability Report.
   2. This report breaks down sales tax amounts by tax rate and tax agency name. It’s a great way to check if the system is calculating taxes correctly and identify where amounts are being assigned.
       

Let me know if you need help with any of these steps or contacting support.

I checked everything you mentioned.  The odd thing is the Tax Liability Report shows the tax in Erie County, but when you go to the Balance Sheet or Chart of Accounts the amount is in the Alleghany Tax Payable account.  

When I post an invoice for Sales Receipt the sales tax for the county is selected using the drop down box (Select Sales Tax rate).  It is the correct sales tax and the correct calculation of Erie, but the line item is appearing in the Alleghany Sales Tax GL.  

Thanks for getting back with the Community, ChrisMc29. I appreciate you performing Jovychris_A's steps.

Since you're still unsure why sales tax is posting to a specific tax payable account, I'd recommend working with a tax professional to identify what's causing it to occur. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:
 

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found a tax professional, they can be contacted through their Send a message form.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

Please don't hesitate to send a reply if there's any additional questions. Have an awesome Tuesday!

This is not something a Tax Professional can assist with.  This is strictly a QBO system issue.  For over a year and half of using QBO the posting worked fine.  Now all of sudden the posting for one account is not going to that account anymore.  

If anyone else out there had a similar problem with QBO can you please advise?  I will continue to look at articles, but everything I found so far hasn't been of help for this situation.

Good afternoon, @ChrisMc29. 

Thanks for chiming back in on this thread and giving more information about your issue. 

Based on the details you gave, I recommend contacting our Customer Support Team for further assistance. They'll be able to use a screen share tool to review your account with you. Here's how: 

1. Go to the Help icon in the top right-hand corner. 
2. Press the Contact Us button. 
3. Enter your question and hit let's talk. 
4. Scroll down and choose to Get a callback. 

Please keep us updated on how the call goes. I'm only a post away if you need any more help. Have a great day! 

Thank You!  An update on the problem.  Apparently there has been a change in QBO and they no longer support the Detail Type Global Tax Payable.  That type came over from QuickBooks Enterprise and was working until about a month ago.  It also had to do with the way our company set up our Sales and Use Tax posting from a separate job cost system we utilize. 

Big shout out to Dshawna from customer support who worked hard to help.  Once we found where the issue stemmed from she offered several viable workarounds.  We are looking at those right now.  

Basically we have to change our posting settings so we can get the reporting we need so I can submit Sales Tax correctly.