How do I decrease sales tax payable after recording the payment I made?
Once I pay sales tax to my state, and that payment appears on my list of Banking transactions, how to I decrease Sales Tax Payable by that amount?
For example, say my Sales Tax Payable balance is $5,000. Sales tax due for the most recent reporting period was $3,000, which I paid. The $3,000 debit is reflected on my Banking transaction list. How do I make Sales Tax Payable equal $2,000?
Re: How do I decrease sales tax payable after recording the payment I made?
Hello there, cameronwylde15.
You can record your payment in the Taxes section to reduce your payable amount. After that, you can match it with your bank transaction. Let's make sure that Bank Account, Payment Date and Amount paid have the same entry with the downloaded bank transaction.
If you're on manual sales tax, you can record it through these steps:
From the Taxes menu, select Sales Tax.
Select the tax agency and then record the tax payment under the Tax you Owed section.
Enter the details and if you want to print a check, mark a check on the Print a check box.
Then, Record Tax Payment.
If you're using automated sales tax, please follow these steps:
Still on the SalesTax page, select Viewreturn.
Click on the Selectfilingmethod button.
Select the Filemanually tab.
At the bottom part of the page, enter the tax amount ($3,000), paymentdate, and the bankaccount used.
You can also print a check for the payment made.
Then, select Recordpayment.
Once done, let's go back to your Banking page. Select the Bank and if QuickBooks recognizes a match, it'll ask you to Match.