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posted
‎10-17-2017 04:10 PM
last updated ‎October 17, 2017 4:10 PM

Credit Memo -- Sales Tax Involved

A good customer didn't pay their sales tax.  We're letting it go.

A want to do a credit memo, to match up their payment.

Should I just credit fees?

I don't want to mess up the sales tax reporting, etc.  

We've already filed the sales tax (we paid).

Thank you!

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Best answer 10-19-2017
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SBC_INC
SBC_INC
Senior Explorer **
‎10-19-2017 09:54 AM

Re: Credit Memo -- Sales Tax Involved

We just went through a Sales Tax audit:  To ensure compliance with Sales Tax remittances in your jurisdiction, my advice is to mark down the RETAIL price directly in the invoice so that your QB software can recalculate the proper sales tax due.  Since you already remitted the higher sales tax, this adjustment will reduce your future sales tax liability and all will be well if you are ever audited.

 

You can always put a note inside the invoice to this effect (to preserve the history of the invoice) for future on-lookers.

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vivianethompson
vivianethompson
Super Explorer *
‎10-17-2017 04:48 PM

Re: Credit Memo -- Sales Tax Involved

You can issue a credit memo which will be associated with an item called "bank charge" or "bad debt". You can also pay the invoice in full, send the payment to Undeposited funds.
Then, in the Make Deposit window, pull in the payment and, in the lower section, minus the missing amount, using bank service charges in the From account field or bad debt.

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SBC_INC
SBC_INC
Senior Explorer **
‎10-19-2017 09:54 AM

Re: Credit Memo -- Sales Tax Involved

We just went through a Sales Tax audit:  To ensure compliance with Sales Tax remittances in your jurisdiction, my advice is to mark down the RETAIL price directly in the invoice so that your QB software can recalculate the proper sales tax due.  Since you already remitted the higher sales tax, this adjustment will reduce your future sales tax liability and all will be well if you are ever audited.

 

You can always put a note inside the invoice to this effect (to preserve the history of the invoice) for future on-lookers.

Reply
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