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How do you make a sales tax adjustment to lessen the amount owed due to an early payment credit? The adjustment only adds to the amount owed.

 
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QuickBooks Team

How do you make a sales tax adjustment to lessen the amount owed due to an early payment credit? The adjustment only adds to the amount owed.

You've come to the right place, heather4.

 

I have some clarification on this matter that I'm sure you'll find helpful.

 

I'd like to begin by deleting the adjustments that increased the sales tax amount, to avoid having duplicate records. Here's how:

  1. Click Taxes from the left menu.
  2. Make sure you're in the Sales Tax tab.
  3. Under Recent Sales Tax Payments, highlight the adjustment by selecting it.
  4. Click Delete Payment.
  5. Select Yes on the confirmation screen.

Delete Adjustment.PNG Delete Adjustment 2.PNG

 

Once they're deleted, allow me to walk you through the steps on how to make the adjustment:

  1. Click Taxes from the left menu.
  2. Make sure you're in the Sales Tax tab.
    - If you're still on this page, then proceed to the next step.
  3. Select the sales tax in question to highlight it.
  4. Click Record Tax Payment.
  5. Choose the correct Bank Account.
  6. Fill in the following fields:
    - Payment Date & Tax Period Ending: Choose the appropriate dates.
    - Tax Payment: Enter the adjustment as a positive amount, then check the Make Adjustment checkbox.
    - Adjustment Amount: Enter the adjustment as a negative amount to zero out the Total Payment, since we're just making an adjustment.
    - Enter Reason: This is an optional field, you can leave this blank.
    - Start Typing: From this drop-down menu, instead of the Sales Tax Payable account, select an income account instead, such as Other Income.
  7. Hit Record Tax Payment.

Record Adjustment.PNG Record Adjustment 2.PNG

 

Additionally, I'm including articles that contain further information on this:

With these resources, I'm confident you can make certain all of your taxes are adjusted appropriately.

 

I always got your back. Don't hesitate to reach out to me here in the Community with any additional questions or concerns you may have. Thanks for dropping in, wishing you and your business only the best.

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