How do I set the GL account for sales tax that I charge to my customers on their invoices?

Perfect! I found what I needed and made the changes. Thank you so much for your help.

I'm sorry. One more quick question on this. So when i enter a sales invoice and charges sales tax it posts the tax to an pre-setup Sales Tax Payable account in QB. I think i have that part figured out. The follow up is does it create a vendor AP account as well? I already have an account for the entity which i need to remit the sales tax to. If it doesn't then am I stuck just entering a payment to the entity as a manual check out of the bank account? Or is there some other method? 

Thank you for getting back to us, @kelekonagreen.

When you create a company, the QBO system automatically creates specific accounts by default as mentioned above. Yes, one of them is the A/P account. Our general recommendation is to maintain one A/P account. This way, you're able to organize your books and business expenses accordingly. You can refer to these articles for the complete details:

• Learn about the chart of accounts in QuickBooks

• Manage default and special accounts in your chart of accounts

Furthermore, there's no need to manually enter a payment to the entity account as a manual check since your vendor expenses are already recorded to the default A/P account. Then, when you already have multiple A/P accounts, you can consider merging them. However, I'd recommend consulting your accountant before doing so to keep your books accurate.

In case you have to group or divide your open payables, you can use location tracking to group them. I'd recommend checking out this article's Use location tracking to group payables section for the complete details: How to group Accounts Payable account types.

Additionally, you can pull up the Accounts Payable Ageing Detail and Summary reports. This way, you're able to effectively monitor your unpaid bills that are grouped by days past due. Just go to the What you owe section from the Reports menu's Standard tab.

Please know that you're always welcome to comment below if you have other concerns or follow-up inquiries about managing your default accounts and expense transactions in QBO. I'm just around to help. Take care always.

I understand most everything you said but I don't think I have some of those options. I'm working with QB Plus on the desktop app. I have entered an invoice and charged the sales tax. It booked the tax owed to the automatic payable account as you state. However, it is not tied to a vendor account as a payable. If I run the AP Aging report you suggest it doesn't show up in either detail or summary. The automatic GL payable account is set as an Other Current Liability type of account. I'm thinking that's why it doesn't show up on the aging. So the payment for the sales tax to the taxing entity is handled how? It won't show up on the Pay Bills to be paid so wondering how you go about cutting a check to the tax entity? 

Great! I think I got it now. Appreciate your help.

OK.  So does the machine pick a random gl account# (from wherever??) or do we get to input the gl account# that we would like to post all the sales tax to in the company setup?  If so where is this done please.

Let me provide some information about the set up of GL account number for sales tax in QuickBooks, @1935 1462 9520 719.

When you use the Automated Sales tax feature, QuickBooks Online will add the Sales tax payable account. This is where all sales tax for every transaction is recorded. If you want to use account numbers in QuickBooks, you'll just have to turn on the feature. 

Here's how: 

1. Choose Settings ⚙ and select Account and settings.
2. Click the Advanced tab.
3. Choose Edit ✎ in the Chart of accounts section.
4. Select Enable account numbers. If you want account numbers to show on reports and transactions, select Show account numbers.
5. Once done, click Save and then Done.

For more details, feel free to check out this article: Use account numbers in your chart of accounts.

Additionally, I'll be adding this resource on how you can use the automated sales tax: Set up and use automated sales tax in QuickBooks Online.

I'll look forward to your reply if you need clarification. I'll make sure to get back to your right away. Have a blissful day.