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sh2295
Level 2

When I paid my bill it does not allow me to add tax. How can I add tax rate on bill. please use picture as reference.

 
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Best answer December 25, 2020

Best Answers
CharleneMaeF
QuickBooks Team

When I paid my bill it does not allow me to add tax. How can I add tax rate on bill. please use picture as reference.

I know a way on how to add a tax rate on your bill, sh2295.

 

QuickBooks Online US versions only allow us to track sales tax on sales transactions. To track the tax on your bills, we'll have to perform the process manually. I'll guide you how.

 

To begin, we'll have to create a current liability account to track the amount you owe in the tax agency. Here's how:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts, then click New.
  3. For Account Type, select Other Current Liabilities.
  4. Select Other Current Liabilities on the Detail Type.
  5. Type in your desired name under Name
  6. Click on Save.ta2.PNG

 

Once done, let's create a bill in which you'll be tracking sales tax. 

  1. Go to the + New icon.
  2. Select Bill.
  3. Select the vendor's name.
  4. On the Category column, select the account we created, then enter the sales tax amount.
  5. Enter the other necessary details. 
  6. Click Save and close.ta3.PNG

 

When it's time to pay the sales tax, check the liability that has been accrued by going to the Chart of Accounts, locate the account, then click View Register. You can write a check to pay the amount.

 

Additionally, in case you'd like to set up, edit, and deactivate your sales tax rate and settings that you're using on your sales transactions, I suggest checking this article: Set up your Sales Tax.

 

It's my pleasure to help you with the process. Stay in touch with us if you have other concerns about taxes in QuickBooks. This way, we'll be able to help you out.

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2 Comments 2
sh2295
Level 2

When I paid my bill it does not allow me to add tax. How can I add tax rate on bill. please use picture as reference.

attached picture

CharleneMaeF
QuickBooks Team

When I paid my bill it does not allow me to add tax. How can I add tax rate on bill. please use picture as reference.

I know a way on how to add a tax rate on your bill, sh2295.

 

QuickBooks Online US versions only allow us to track sales tax on sales transactions. To track the tax on your bills, we'll have to perform the process manually. I'll guide you how.

 

To begin, we'll have to create a current liability account to track the amount you owe in the tax agency. Here's how:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts, then click New.
  3. For Account Type, select Other Current Liabilities.
  4. Select Other Current Liabilities on the Detail Type.
  5. Type in your desired name under Name
  6. Click on Save.ta2.PNG

 

Once done, let's create a bill in which you'll be tracking sales tax. 

  1. Go to the + New icon.
  2. Select Bill.
  3. Select the vendor's name.
  4. On the Category column, select the account we created, then enter the sales tax amount.
  5. Enter the other necessary details. 
  6. Click Save and close.ta3.PNG

 

When it's time to pay the sales tax, check the liability that has been accrued by going to the Chart of Accounts, locate the account, then click View Register. You can write a check to pay the amount.

 

Additionally, in case you'd like to set up, edit, and deactivate your sales tax rate and settings that you're using on your sales transactions, I suggest checking this article: Set up your Sales Tax.

 

It's my pleasure to help you with the process. Stay in touch with us if you have other concerns about taxes in QuickBooks. This way, we'll be able to help you out.

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