QB Desktop Sales Tax Early Filing Discount

I understand your hurdle with adjusting your sales tax payments in QuickBooks Desktop (QBDT), @ldtrebe14. Let me assist you in fixing this concern. 

Based on the information you provided in your post, you're encountering difficulty with the sales tax payment while entering the adjustment. To avoid errors and problems, please note the type of adjustment account to use when adjusting sales tax payments. Prevent using sales tax payable for the adjustment account. If you're updating because you received a discount or credit, then it's best to select an income account when updating. It is to ensure that your accounting records accurately reflect the change in your revenue. On the other hand, if you're adjusting to add penalties, choose an expense account.

Moreover, reaching out to your accountant is recommended to guarantee the correct posting of transactions in your journal entry regarding your sales tax payment. 

I can help you find one if you don't have an accountant. Visit this page to find an accountant that fits your business: Find a QuickBooks ProAdvisor.

On the other hand, I suggest scanning these articles as further reference in managing your sales tax payments in QBDT:

• Process sales tax adjustment
• Pay sales tax

For more questions about adjusting your sales tax payments in QBDT, don't hesitate to reply here in the thread. We'll be here to help you. Have a good one! 

I have followed these steps and the Adjustment Account is an Income account called Early Filing Discount.  See the screen shot I sent of the sales tax adjustment window.  I do have a pro advisor and they do not know either. Can someone please help with issue?

We appreciate you for adding an attachment, ldtrebe14. Based on it, I can tell that you've correctly recorded your sales tax payment and adjustment in QuickBooks Desktop (QBDT). I'll provide further information on this below.

QuickBooks didn't remove the sales tax discount you've recorded. It only offsets the amount to ensure the balances are correct. Looking at your screenshots, you've paid your sales tax with adjustment. In this case, QuickBooks record it as Billed, and then offset it with the Early Filing Discount account. Don't worry, it won't throw off your sales tax on the next month.

Furthermore, in case you have a discrepancy in the sales tax calculation when creating invoices or sales receipts, you can use a Credit Memo to enter a negative adjustment or decrease the amount.

Also, I've included some of our helpful articles to help you review your payables and troubleshoot some issues or unexpected results you may encounter while managing your sales taxes in QBDT:

• Review sales tax reports
• Resolve common sales tax matters

Please keep me posted if you have any additional sales tax concerns or questions about recording adjustments in QBDT. I'll be right here to help.

For some reason I can not see your screen shots so I'm not sure if this is relevant, but it seems like it might help.  We also have a sales tax discount and when I enter it I make sure to put the date of the discount on the last day of the month it applies to. For example, when I make our sales tax payment on December 20th for the November liability, I enter the discount dated November 30th.