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Tricky Sales Tax/Accounts Receivable Problem

We use QuickBooks Online for our restaurant accounting, and we sync it with a point-of-sale program called SalesVu. Each week, we sync SalesVu with QuickBooks in order to import the transactions and match them to the credit card batch deposits in our bank feed. Each transaction is supposed to have sales tax included, however, for some reason, there seems to have been a glitch in the syncing between QuickBooks and SalesVu for thousands of transactions that occurred back in January/February and part of March. In these transactions, the sales tax payment does not show once they sync over to QuickBooks. So for several thousand transactions, the sales tax remains unpaid, so we have thousands of transactions with small open balances in our QuickBooks A/R account. This has caused our Quickbooks balance to be over $30,000 SHORT of our actual bank balance. In other words, QuickBooks thinks that people still owe us sales tax. But they don't.

 

We include sales tax in the prices of our items. Normally, when a transaction is synced over, QuickBooks can see that sales tax was included in the price of the items that were purchased and the number is automatically calculated as sales tax.

The only way I've found to solve this problem is to go into our A/R account in QuickBooks, click an invoice for a transaction where tax was not applied, select "Sales Tax 7.5%" from the tax dropdown, and click save. The transaction is now paid in full, and our A/R balance is now slightly more correct (less negative). The problem with doing it this way is that there are thousands of transactions. It would take weeks to go through and select the correct sales tax for each one. Can anyone think of an easier/faster way to do this? Can I somehow credit A/R for a large amount to make our balance correct? Please help!

Solved
Best answer a month ago

Accepted Solutions
QuickBooks Team

Re: Tricky Sales Tax/Accounts Receivable Problem

Glad to hear from you again, @chabutna.

 

I can see the inconvenience of this process has caused you. However, you've got me here to provide some information in settling your sales tax in QuickBooks Online.

 

The fastest way to apply sales tax on your invoices is to create a journal entry and use the sales tax payable as the account affected. This will zero out the negative balance on your QuickBooks. 

 

But before doing so, I'd suggest reaching out to your accountant to ensure the best course of action for your business. 

 

To create a journal entry, you may follow these steps below:

  1. Go to the Gear ⨁ icon.
  2. Select Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Select Save and close.

Additionally, I've added here some resources about handling the Accounts Receivable and Sales tax in QuickBooks Online for your reference:

This should get you moving today. Please let me know if you have any other questions about this concern. I'll be around to help you out. Have a good one!

1 Comment
QuickBooks Team

Re: Tricky Sales Tax/Accounts Receivable Problem

Glad to hear from you again, @chabutna.

 

I can see the inconvenience of this process has caused you. However, you've got me here to provide some information in settling your sales tax in QuickBooks Online.

 

The fastest way to apply sales tax on your invoices is to create a journal entry and use the sales tax payable as the account affected. This will zero out the negative balance on your QuickBooks. 

 

But before doing so, I'd suggest reaching out to your accountant to ensure the best course of action for your business. 

 

To create a journal entry, you may follow these steps below:

  1. Go to the Gear ⨁ icon.
  2. Select Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Select Save and close.

Additionally, I've added here some resources about handling the Accounts Receivable and Sales tax in QuickBooks Online for your reference:

This should get you moving today. Please let me know if you have any other questions about this concern. I'll be around to help you out. Have a good one!

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