QBO Sales Tax Liability Report total does NOT match other reports

Hi there, @CBPP.

Let me help and provide information about the Sales Tax Liability report that does not match your other reports in QuickBooks Online (QBO).

If your Sales Tax Liability report shows total sales that are different from the total income, you'll want to be aware that total sales and income won't always match because there are transactions that can appear in a data file which makes it unlikely for your Sales Tax Liability and Sales by Product/Service Summary reports to match.

To match your Sales Tax Liability report and Sales by Product/Service Summary, you have to click the total amount of sales by product/service summary and filter or tick the box of Taxable Amount and Tax Amount.

Here's how:

1. Go to Sales by Product/Service Summary report.
2. Click the TOTAL AMOUNT.
3. Filter the Report Period, and click the small Gear Icon beside the Export.
4. Click Show More.
5. Tick the box of Taxable, Taxable Amount, and Tax Amount.
6. Select Customize.
7. Click Run report.

I'll also add this article to guide you in customizing your reports to show specific accounts or customers, or format the layout so the right data shows up in the right place: Customize reports in QuickBooks Online.

Please feel free to drop a comment below, if you have further concerns about matching your reports or other QBO-related concerns. I will answer them in any possible way.

Hello Clark,

Thank you very much for your answer to my question. Unfortunately, that did not seem to answer my question or change the report. It changed what information was shown on the report, yes, but ultimately, the TOTAL amount is still the same and NOT matching the Liability report.
I am not sure why total sales wouldn't match on various reports. Sales within a specific time period should all total to the same amount no matter which report is being ran, correct? Please find the attached screenshot that I have appropriate items ticked as you instructed, and attached PDF showing the full report.
Any additional guidance is truly appreciated. Thank you!!!

Jourdan

(Attached PDF was removed because it includes PII)

Hello, @CBPP. I appreciate the efforts you've made. I'm here to share additional information about your issue.

Sales Tax Liability report summarizes your taxable and non-taxable sales and the total sales tax you collected from customers. The Sales by Customer Summary Detail report lets you see the total sales made for the specific period.

The reason why Sales Tax Liability Report and Sales by Product and Services Report are different due to various reasons like the following:

• The report has a separate report basis. Businesses that use an accrual basis often pay sales tax on a cash basis. 
• Reports have different date ranges. 
• Finance and statements charges will not appear on the Sales Tax Liability report. 
• Reimbursed expenses may or may not appear on these reports, depending on how they've been set up.

When you pass on expenses to a customer during a sales transaction, you don't need to use a sales item. However, reimbursed expenses won't appear in standard sales reports that are filtered for all sales items. These transactions are usually taxable, so their amount should be included in the sales figures for the Sales Tax Liability report.

Also, you can check this article if you want to remember its current customization settings: Memorize reports in QuickBooks Online.

Don't hesitate to get back to us if you have further questions about reports in QBO. We're always available to assist you.

i have been having the same problem as the many people have that the sales liability report does not even closely match the Sales by product/service report. And, NONE, I repeat NONE of the reason's for why this discrepancy apply to my situation. Nice try but the truth is there is something, possibly many things with the way QB calculates Sales Tax Liability.  You seem to be right about one thing, its not retreiving its data from a place consistent with where sales is retrieving its data. Sounds like a QB problem and blaming it on other things doesn't help the millions of people trying to  pay the correct amount of taxes.

I could not have a simpler business structure. I simply have 4 areas that I can receive income Non-tax services, non tax shipping charges, and only two accounts that make up my taxable sales. I never give refunds or credits all sales are final.  Yet the total sales for each of the 4 catagories come in about 25% off. This is not a small amount.  

If you cannot be forthright about where the problem is or even how to fix it. How should we file our TPT taxes. Should we use the Tax Liability Report which shows less or the Sales by product/service totals?

Please tell us mistified people what is the right report to report on. 

Linda

Hello, Linda. Thanks for sharing your detailed experience with the discrepancies in the sales reports. I understand your frustration, especially when it affects something as crucial as tax reporting.

The differences in the Sales Tax Liability and Sales by Product/Service Summary reports can be caused by various factors, as my colleague SheandL explained.

But since those reasons don't apply to your situation, I recommend reaching out to our support team for further investigation. They can dig into what's causing the mismatch and find a solution.

Here's how to contact them:

1. Log in to QuickBooks Online.
2. Go to the Help (?) button and open the Search tab.
3. Select Contact Us.
4. Choose a way to connect with us.

To address your question, you can review your sales tax before filing your return with the right tax agency by running the Sales Tax Liability report. This gives you a breakdown of your taxable and nontaxable transactions. For reference, visit this article: File your sales tax return and record sales tax payments in QuickBooks Online.

In case you need to adjust and delete sales tax payments, check out this article for more guidance: Manage sales tax payments in QuickBooks Online.

If you have any other concerns, we're just a reply away. Keep safe and be well, Linda.

Same problem here.  We have a very simple accounting and bookkeeping system. We operate on a "cash" basis. We create invoices, tag the services as taxable or non-taxable.  At the end of the quarter, I run the sales tax liability report.  The gross total seems to always be correct as I match it to the Sales by Customer Detail report.  HOWEVER, the non-taxable column is off by $8,505.17 for the same period, same accounting method. I spot checked many invoices in the "detail" of the non-taxable column and they are ALL marked as taxable items. Where is the "non-taxable" column pulling it's information from?? I've called the support line and the same answer for every issue - "it's under investigation and we will email you when it's resolved".  OK, two years later, I'm still waiting for answers!  

Does anyone in this forum from QBO have an honest answer?  Just say, "I don't know why" if that's the case.  That's better than you telling me and all of us on the forum that have issues some lame example of how to work it when it doesn't apply to any of our issues.  

The sales tax liability report is off compared to Quickbooks desktop.  My desktop is correct.  I need it to show all the non taxables so I can put it in the report when I pay my taxes.

Let's make the necessary adjustments to align both reports correctly for your tax payment preparation in QuickBooks Online, EKFPROMO. Prior to that, I would like to provide a brief overview of the feature differences between QuickBooks Online (QBO) and QuickBooks Desktop (QBDT).

QuickBooks Online (QBO) and QuickBooks Desktop (QBDT) are both highly regarded accounting software solutions offered by Intuit. However, they have distinct features that cater to different business needs, especially for report data filters. QuickBooks Desktop (QBDT) is known for its comprehensive set of features that cater to a wide range of accounting needs, making it a preferred choice for businesses requiring detailed and complex financial management.

While, QBO offers a flexible feature that allows you to filter reports by specific criteria, making it ideal for customized financial information. Its cloud-based solution is preferred for mobility and remote access over locally installed software.

Let me show you the steps to filter reports to non-taxable sales taxes:

1. Click the Reports tab from the left panel and search the Sales Tax Liability Report.

2. Tap the Customize button and navigate to the Row/Columns section.

3. Put a checkmark on the Non-Taxable checkbox.

4. After that, click the Run Report.

For more guidance see this page that can help you generate reports concerning your sales tax liabilities, either record or edit your sales tax payments, and view your payment history for different time spans: Manage sales tax payments in QuickBooks Online.

I've included this page to stay updated on how Cash and Accrual accounting affect sales tax: Choose between cash and accrual accounting methods in QuickBooks Online.

Additionally, I suggest considering our QuickBooks Live Expert Assisted service to enhance your QBO experience. Our knowledgeable team of experts stands ready to provide immediate support tailored to your business's unique needs. They will assist you in navigating your plan's features, accounts, customers, and vendors.

If you have concerns regarding your sales reports, please drop your comment below. I'll ensure to provide relevant information that will help you succeed in you daily tasks in QBO.

I did that and the non taxable total is wrong.  On my desktop its correct.  The reason I switched to QBO is because I was told that desktop is having problems and being discontinued.  I prefer desktop.  The desktop gives me the correct numbers and also totals, on QBO I need to export to excel and then filter myself to find whats non taxable, taxable, out of state, shipping, etc so I can pay the sales tax bill.

Thanks for circling back to this thread, EKFPROMO. I can help you get the correct totals for non-taxable sales in QuickBooks and obtain accurate figures to pay your sales tax bill.

QuickBooks Desktop (QBDT) offers features for complex financial management, providing reports that directly show non-taxable sales without extra steps. On the other hand, some QuickBooks Online (QBO) reports need customization and filtering options to get the information you need.

If you've migrated from QBDT, please note that sales tax details won't move to the online version. Here's an article about features and data that are transferable during the migration process: Learn how features and data move from QBDT to QBO.

Moreover, the contents of your QBO report reflect the data you've entered into the system. It's advisable to review each transaction and verify its tax status to see if some transactions are mistakenly marked as taxable to ensure accuracy. Alternatively, you can generate a Non-Taxable Sales report in QBO and customize it to view non-taxable sales.

Here's how:

1. Go to the Reports tab.
2. Key in and select Taxable Sales Detail.
3. Click Customize.
4. Choose the date range.
   • On the Filter dropdown, select these checkboxes: Customer Taxable to non-taxable sales.
   • Distribution Account to All Income/Expense Accounts 
   • Product/Service Taxable to Non-Taxable 
5. Hit Run report.

Check out this article to learn more about the process: Create a Non-Taxable sales report in QBO. You can also memorize this report to save the customized settings for future use.

Accurate reports are essential for regulatory compliance and seamless financial reporting. Let us know if you need more assistance with taxable and non-taxable reports in QBO. I'll be happy to lend a hand again. Be safe!

Its pulling the wrong information.  Maybe when it migrated the info from desktop, it missed something.  How do I check?

I appreciate you for coming back to this thread, EKFPROMO.  I'll shed some light about about how reports are moved from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO).

Once the migration is finished and you are reviewing the reports in your QBO account, you may notice differences compared to the data shown in QBDT. For instance, accrual basis reports in QBO will match those in QBDT, while cash basis reports may not. Additionally, the two programs do not have the same reports.

In terms of taxes, sales tax will not be copied for all transactions; some will be transferred as journal entries. For more information, feel free to refer to this article: Learn how features and data move from QuickBooks Desktop to QuickBooks Online. 

I've also added this helpful resource that you can open for guidance in setting up your QBO account to start working: What to do after you move from QuickBooks Desktop for Windows or Mac to QuickBooks Online. 

Moreover, did you know you can schedule a free consultation with our QuickBooks Live Expert Assisted? They can offer tips and guidance about managing your QuickBooks Online account, specifically for reports.

Keep me posted if you have any other concerns about managing your QBO account. Just visit this forum anytime and I'm just around the corner to help.