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bonnie-sc-techse
Level 1

I pay our sales tax early in the month and receive a discount. When I adjusted it in QB I categorized the discount as uncategorized income. How do I go back to change it

I have created a new account for future adjustments labeled tax discount, but I'd like to get this old one categorized to that account.
3 Comments 3
ShiellaGraceA
QuickBooks Team

I pay our sales tax early in the month and receive a discount. When I adjusted it in QB I categorized the discount as uncategorized income. How do I go back to change it

Glad you've reached out to us today, @bonnie-sc-techse.

 

I'll share the steps on how you can correct the discount category of your sales tax. While we're unable to edit your sales tax payment, you'll want to delete and recreate the payment. This way, you can change the discount category.

 

Here's how to delete:

 

  1. Go to Taxes.
  2. Choose Sales Tax.
  3. Under Recent Sales Tax Payments, select the payment you want to change.
  4. Click Delete Payment.

 

 

 

Once deleted, recreate the payment by clicking the Record Tax Payment button found on the same page (Sales Tax Center). From there, choose the correct discount category.

 

Want more details? Check out this guide: Sales tax in QuickBooks Online.

 

 

I've also added this link here if you need help with other tasks in QBO. It has topics with articles that'll guide you through the process.

 

 

Know that I'm always here to assist you some more if you still have questions or concerns with sales tax. Just reply to this post and I'll get back to you as soon as possible. Stay safe and take care always.

bonnie-sc-techse
Level 1

I pay our sales tax early in the month and receive a discount. When I adjusted it in QB I categorized the discount as uncategorized income. How do I go back to change it

I tried to do that, but even after deleting the payment the credit was still in the tax return categorized as uncategorized income. It wouldn't let me change that.

Rea_M
QuickBooks Team

I pay our sales tax early in the month and receive a discount. When I adjusted it in QB I categorized the discount as uncategorized income. How do I go back to change it

Changing the sales tax adjustment account is easy, and I'm here to show you how, @bonnie-sc-techse.

 

While recreating the sales tax payment, you'll have to choose the appropriate category (i.e., Tax Discount) in the Account field while recording the adjustment. This way, you're able to change and use the right account.

  1. Go to the Taxes menu.
  2. Choose Sales Tax.
  3. Find the sales tax payment you need to record, then select the View return button.
  4. In the Review your sales tax page, click the + Add an adjustment link below Total tax.
  5. Enter all the necessary details (i.e., Reason, Adjustment date, and Amount). Make sure to select the "Tax Discount" category under the Account drop-down.
  6. Click Add, then Record payment.

 

I've attached a screenshot below that shows the last three steps.

 

After that, you can pull up the Sales Tax Liability report. This will let you verify the account used in recording your sales tax payments. Just go to the Reports menu's Standard tab and visit the Sales tax section

 

If you wish to know more about setting up, implementing, and paying your sales tax in QBO, you can refer to this article: Sales tax in QuickBooks Online. It also answers the most commonly asked questions about the said topic.

 

Also, to further guide you in managing your sales tax transactions in QBO, I'd recommend checking out this article: Taxes in QuickBooks Online. It includes topics about preparing your taxes, forms, and reports, to name a few.

 

Let me know how it goes in the comments below. If you have other sales tax concerns, I'm just around to help. Take care always.

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