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Intuit
21 helpful votes

Enter sales tax amount manually

QuickBooks Online gives you two options if you need to manually enter or change the tax amount calculated in a sales transaction.

Option 1: Enter an adjustment when you make the tax payment

Entering an adjustment helps account for rounding differences. See Record, Delete or Edit a Sales Tax Payment for more information.

Option 2: Create a sales tax item and use it on your sales transactions.

Important! Be aware that if you use this method, you won't be able to pay sales tax through the Sales Tax Center since it uses a special liability account that you can't link to products and services.

  1. Create an Other Current Liability account
    1. Select the Gear icon at the top, then Chart of Accounts.
    2. In the Chart of Accounts, select the New button.
    3. From the Account Type drop-down, choose Other Current Liabilities.
    4. In the Name field, enter Sales Tax Payable – Manual Adjustment.
    5. Select Save and close.
  2. Create a Sales Tax item.
      1. Select the Gear icon at the top, then Products and Services.
      2. In the Products and Services page, select New.
      3. Select Non-Inventory or Service for Item Type.
      4. Enter Sales Tax in the Name and Description fields.
    1. Leave the Sales price/rate field blank.
    2. In the Income account field, choose the account you set up in Step 1.
    3. Make sure the Is taxable box is unchecked.
    4. Select Save and close.
  3. Add the item to your sales transactions.
    1. Create the invoice or sales receipt as usual.
    2. Add the sales tax item created in Step 2.
    3. Manually enter the amount for the Sales Tax line item.
    4. Select Save and close.

To determine the amount of sales tax owed:

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. Find the Other Current liability account an in the Action column, select View register.
  3. The balance listed in the is the amount of sales tax currently owed.

To pay the sales tax from this other current liability account:

  1. Select the Plus icon (+) at the top, then Check.
  2. In the Payee field, select the vendor receiving the sales tax payments.
  3. In the Account field, select the Sales Tax liability account you created.
  4. Enter the amount of your sales tax payment.
  5. Select Save and close.

 

  • Using the Sales Tax Center along with manual payments makes sales tax tracking difficult and error-prone. We highly recommend that you stick with just one method. For example, if you're using a sales tax item to document your sales tax amounts for certain situations, you may want to do that for all your transactions to make paying your tax easier.
  • If you are using Automated Sales Tax, you have the option (though not recommended) to override sales tax amounts.

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