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Level 1

Entering Sales Tax Owed Manually

Hello, and thank you for looking at my question.


We are using a seperate point of sale system, and we enter our daily sales into Quickbooks as a whole each evening when we close out. 


We enter a sales receipt for our cash sales, we enter a sales receipt for our credit card sales, and we enter an invoice for orders on account.


Our point of sale system tells us all the information that we need.  Cash and Check sales, Credit Card Sales, and sales on account.  It also tells us the total of sales tax collected, however it is not itemized.  We treat it as an expense.


We attempted to follow this


The Liability Account is zeroed out when the payment is made, however it still shows up in Accounts Receivable.  


How can we do this as a bill/Expense?  Which account should I use, or create?


Thank you for  your time!

Level 15

Entering Sales Tax Owed Manually

Other than use tax, sales tax paid is not an expense. You collect, hold, and pay the sales tax, that makes collecting it a liability.

The link you provided is wrong, not a real surprise to me.

When you enter the sales tax item you create for manual sales tax, if you put it on a sales receipt that works, but if you put it on an invoice, as you saw that does not work. You must use a sales receipt when you use that item.


You do not enter a bill, just make the payment and use the manual sales tax liability account as the expense (reason) for the payment

Level 1

Entering Sales Tax Owed Manually

Thank you for the Response.


So the dilemma with doing a sales receipt is that I collect the money again.  In short, we did not track the sales tax as we should have.  We followed along with our sales tax report from our POS system, however, we did not enter it daily.  The sales are not itemized.  We receive a Cash total, a Credit Card total, and an account total, which include the sales tax.  Our report also shows what was collected for Sales Tax.  


Maybe I am not doing the sales receipt right, but it does need to receive a payment to a bank account, Correct?

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