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Anonymous
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How to adjust sales tax without ending up in recorded deposits

I switched my company over to Quick Books from an old software. In the process I had to do a work around that allowed me to crossover the customer and open orders but anything from the year that had been paid was not crossed over as I could not find an easy way to do it without it being transferred and showing it closed.  Anyway in doing this I ended up with a  having my sales tax off for sever of the states that we sell to compared to our old system, because it was missing the sales of what was already closed.  I followed the directions from https://quickbooks.intuit.com/community/Reports-and-accounting/Process-sales-tax-adjustment/m-p/2037... - which worked well, however after making the adjustments it added several record deposits entries that are now just sitting in the record deposit area.  Obviously there was no money actually gained or loss and so I don't want to put this towards any asset account.

 

The other way I could have done this was to use the manage sales tax and used the adjust sales tax window, however when I did this it didn't actually adjust the account it just put a new entry under the account. For example if it said we owed tax amount for state A for $100 and really it was $150. when I adjust the amount instead of adjusting it to STATE A $150, it left that as $100 and then put a separate line underneath with +50.00 which becomes quite messy.

 

How can I get rid of those adjustments from the record deposit window? Is there a better way to adjust these taxes?

 

Thank you.

3 Comments
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Level 15

How to adjust sales tax without ending up in recorded deposits


@Anonymous wrote:

 

The other way I could have done this was to use the manage sales tax and used the adjust sales tax window, however when I did this it didn't actually adjust the account it just put a new entry under the account. For example if it said we owed tax amount for state A for $100 and really it was $150. when I adjust the amount instead of adjusting it to STATE A $150, it left that as $100 and then put a separate line underneath with +50.00 which becomes quite messy.

QB has always done this, and doing so reflects the actual account entries.  There was x-amount due and then the adjustment changes that.  Just be sure to check off both the tax due line and the adjustment together before clicking pay tax.

 

How can I get rid of those adjustments from the record deposit window? Is there a better way to adjust these taxes?

 

An adjustment should never hit banking, the adjusting account should be set to an income account the adjustment is lowering tax due, or an expense account if the adjustment is increasing tax due.

What type account did you use on the adjustment?

 

 


 

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Level 15

How to adjust sales tax without ending up in recorded deposits

Highlighted
Level 15

How to adjust sales tax without ending up in recorded deposits


@qbteachmt wrote:

@Rustler

 

Just a note, this person asked twice: https://community.intuit.com/questions/1790406-how-to-correct-tax-adjustment-from-ending-up-in-recor...


:-)

I just answer the questions I can, I could care less if it was asked other times, unless I stumble on the duplicate and have the time and inclination to say something.
But thanks

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