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SH66
Level 1

Add sales tax to invoice manually

Hey everyone,

We split a production for a client into 2 invoices (50% down and 50% at wrap). We neglected to add sales tax to the first invoice. Now, for the 2nd invoice, I would like to 

1 Comment 1
CharleneMae_F
QuickBooks Team

Add sales tax to invoice manually

Help has arrived, SH66. I'm here to ensure you're able to manually add sales tax to your invoice.

 

When manually adding sales tax to invoices, we'll have first to create the Other Current Liability account. Then, let's set up a sales tax item. Then, let's create a Sales Tax item. After that, we can now add the created sales tax item to your invoice. I'll show you the step-by-step process below:

 

Step 1: Create an Other Current Liability account

 

  1. Go to the Accounting menu and then select Chart of Accounts.
  2. Select the New button.
  3. From the Account Type drop-down menu, choose Other Current Liabilities.
  4. In the Name field, enter Sales Tax Payable – Manual Adjustment.
  5. Once you're finished, please select Save and close.

Step 2: Create a Sales Tax item

 

  1. Go to the Sales menu and then choose Products and Services.
  2. Select New.
  3. Choose Non-Inventory or Service for Item Type.
  4. Enter Sales Tax in the Name and Description fields.
  5. Leave the Sales price/rate field blank.
  6. In the Income Account field, choose the account you set up in Step 1.
  7. Once you're done, please click on Save and close.

Step 3: Add the item to your sales transactions

 

  1. Create the second invoice as usual.
  2. Add the sales tax item created in Step 2.
  3. Manually enter the amount for the Sales Tax line item, then click on Save and close.

Please note when using this method, you'll have to create a check to pay the sales tax. For more details about the process, see Enter sales tax amount manually.

 

Additionally, you might want to set up and use the automated sales tax in QuickBooks Online. You can read through these articles for the detailed steps and information: 

 

 

I'm always here if you have other questions with regards to manually adding sales tax to your invoices. It's my priority to get this resolved.

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