We enter some of our invoices ahead of time, usually around March , but will not complete the job, or get paid for this invoice, until around May/June.
In March we take deposits/down payments from some of these customers, currently we calculate the % we want paid early on the March invoice as a down payment and tell the customer to send a check at this time.
We always ask the customer if they are tax exempt, which many of them are and provide the tax exempt paperwork, but sometimes the customer is not aware of the exemption or cannot provide one right away during the time we create the initial invoice/down payment % in March, so we add the sales tax onto the March invoice.
Laster on, the customer will end up providing their tax exemption, and we in turn update the March created invoice , but I have already paid sales tax on that March dated/created invoice because our books are setup to pay tax at the invoice date (accrual). So I would need to amend the periods return for a credit in PA Sales Tax Online Site/Etides. This would be a complete refund of taxes collected in the books. How do I do this? Note- PA Sales Tax doe snot allow a Cask Basis-- has to be accrual.
2nd example:
We also sometimes create these invoices in March for the customer with a price and tax, and they come back to us closer to May/June and lower the acres/cost of this work, so the sales tax that had been previously paid to the state per the invoice creation date was incorrect. I would need to amend the reported/invoice date period return and owe the state additional money or less if the cost of the job/invoice is now lower.
How do i adjust this in quickbooks tax liability?
how do I use the tax liability to adjust the above 2 eaxmples?
Also so we do not run into this next year, any ideas on how to enter these March invoices and down payments for the customers so that the tax is not pulled over to report/pay until a later date in time closer to our June working the job timeframe?
