How to adjust sales tax when an item is returned the following month?

nancyl · ‎12-10-2018

A customer purchases and pays for an item that is taxable this month. I pay the state sales tax and then the customer returns the item and I have to refund the tax to them the next month. Where do I make the adjust for the next months tax report? And how do I adjust the return of the item with the sales tax?

qbteachmt · ‎12-10-2018

You sell something on a Sales Receipt or Invoice.

You accept the Return by using that same information on a Credit Memo. There is a Refund Icon at the top. You control the Taxable status here, the same as on the sale form. This already reverses everything about the sale, because that is the job of using Credit memo = reverse the sale.

View solution in original post

qbteachmt · ‎12-10-2018

You sell something on a Sales Receipt or Invoice.

You accept the Return by using that same information on a Credit Memo. There is a Refund Icon at the top. You control the Taxable status here, the same as on the sale form. This already reverses everything about the sale, because that is the job of using Credit memo = reverse the sale.

View solution in original post

nancyl · ‎12-10-2018

When I do this does it make the adjustment on the next months state sales tax statement or do I have to run a separate report on return sales taxes? For example...with my old DOS program...I run a report on this months sales taxes and then a report on any returns that have come in from previous months where I already paid the sales tax to the state. Then I send the accountant a report with the taxes for this month minus the return taxes.

Anonymous · ‎12-10-2018

Normally use the date the items are returned for the credit memo. Then there is no need to run two reports as the return will be included in the current period report.

nancyl · ‎12-10-2018

Perfect....thanks so much!

qbteachmt · ‎12-10-2018

"and then a report on any returns that have come in from previous months where I already paid the sales tax to the state. Then I send the accountant a report with the taxes for this month minus the return taxes."

The credit memo takes care of everything for you.

nancyl · ‎12-10-2018

Absolutely goes with the way I've been doing it. DOS to this is a challenge but not impossible. Thank you!

Anonymous · ‎12-10-2018

Enter a taxable credit memo when they return the sale.

nancyl · ‎12-10-2018

Taxable credit memo? I don't understand?

Anonymous · ‎12-10-2018

What don't you understand?

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How to adjust sales tax when an item is returned the following month?