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In South Dakota we have a general sales tax rate and a tourist sales tax rate. The latter applies to short term lodging and various vacation attractions. Both of these taxes are paid to the state treasurer (the vendor). When I show sales tax liabilities to pay them, both tax rates show up on separate lines. However when I want to make an adjustment, I have not found a way to select which rate I want to adjust since both taxes are paid to the same vendor (the state treasurer). Is there a way to select a particular tax liability when they are both paid to the same vendor?
I'll guide you on how you can select a particular tax liability account, Black Hills Boy.
QuickBooks Desktop helps you keep an accurate record of these taxes so you can easily monitor and remit them to the appropriate tax collecting agency.
Under the Pay Sales Tax window, you'll have the option to select which rate you want to adjust. I've provided a screenshot to show you how:
To give you thorough information on how you can make an adjustment with your sales, consider reading this article: Set Up Sales Tax In QuickBooks Desktop.
Furthermore, QuickBooks provides different reports that cater to your business needs. Check out this article for more information: Understand Reports.
Reach out to us if you have any questions when adjusting sales tax. The Community is always right here 24/7.
I tried the solution offered, but that did not work. In the "Pay Sales Tax" dialog, I selected the tax that I wanted to adjust, then clicked on the "Adjust" button. The "Sales Tax Adjustment" dialog came up and I elected to "Reduce Sales Tax By" and put in an amount, and clicked "OK." A "Warning" dialog appeared which said: "Because you made a Sales Tax Adjustment," the Amount Paid to each vendor has now been reset." I clicked on "OK" and was returned to the "Pay Sales Tax" dialog. The amount due on that tax item was not changed.
Am I missing something here?
Is is possible or advisable to accomplish sales tax adjustments with journal entries?
One more observation, I just looked at my "Sales Tax Payable" current liability account register. It shows entries for my three attempts at reducing my sales tax liability. However, that reduction did not also appear in the sales tax due dialog.
Under my "Sales Tax Payable" current liability account. I could probably make sub accounts for each tax rate, then do journal entries to make adjustments. Then I might be able to select those accounts when recording a payment to our state treasurer.
Do you think that would work?
Hello there, @Black Hills Boy.
Thanks for sharing some information about adjusting sales tax.. Allow me to step in and share insights about this.
Making an adjustment with Journal Entries (JE) is not an option. However, if you want to use the JE, I suggest reaching out to an accountant. They're the ones who can give you advice if you need a journal entry for this one and the accounts to be used.
In regard to reducing entry which is not showing in your books, I recommend contacting our support team to further check the setup. Here's how:
To learn more about sales tax in QuickBooks Desktop (QBDT), you may check this article: Set up sales tax in QuickBooks Desktop.
I'm always here if you need more help with your sales tax or anything else. Let me know by leaving a reply below. Keep safe, and have a great rest of the day!
"Making an adjustment with Journal Entries (JE) is not an option. However, if you want to use the JE, I suggest reaching out to an accountant."
So if making a journal entry to deal with my sales tax adjustment question is "not an option", then what good would it do to reach out to an accountant?
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