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Experienced Member

Quickbooks' handling of Georgia Sales Tax is not correct. There is no longer a way to post the vendor's compensation discount.

 
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Best answer 06-19-2019

Accepted Solutions
QuickBooks Team

Re: Quickbooks' handling of Georgia Sales Tax is not correct. There is no longer a way to post th...

Thanks for providing additional information regarding your concern, @Linda64.


In QuickBooks Online, you can make an adjustment to decrease and increase the amount of sales tax owed by entering discounts, fines, interests or credits. To do so, simply click the blue + Add an adjustment link on the Review your sales tax window. 


Here’s how:

  1. From the Sales Tax page, click View return for Georgia.
  2. Click the + Add an adjustment link on the Review your sales tax window.
  3. Select a Reason, Account and Amount of the adjustment, then click Add. QuickBooks should provide you the remaining tax due amount on the screen.
  4. Proceed to pay the sales tax amount.

sales tax 1.PNG sales tax 2.PNG sales tax 3.PNG sales tax 4.PNG

 

After entering the discount, QBO will no longer show the amount as sales tax owed. For more information about the process, go to record or adjust a tax payment section on this article: Manage sales tax payments


That should get you pointed in the right direction. 


Let me know how this goes and if you need anything else. I’m more than happy to help. Have a great day!

3 Comments
QuickBooks Team

Re: Quickbooks' handling of Georgia Sales Tax is not correct. There is no longer a way to post th...

Hello there, @Linda64.

 

Let's create a vendor credit to post the vendor's compensation discount. And allow me to share a few details about the Sales Tax.

 

Just to clarify, are you selling to a customer in different states? If so, let me share a few things to know about collecting sales tax.

 

If you sell an items to a different state, the amount of sales tax you collect varies from state to state and location to location. That'll be the reason why your Georgia sales tax calculating incorrectly. For more information, you can read this article for your reference: Sales Tax Basics.

 

Also, you can create a vendor credit to record the vendor's compensation discount. Let me guide you how.

 

First off, enter the vendor's compensation discount:

 

  1. Click the Plus (+) icon.
  2. Select Bank Deposit.
  3. In the Add other funds to this deposit section, select the vendor name.
  4. Choose the Accounts Payable account in the Account column.
  5. Enter the amount.
  6. Hit Save and close.

Then, link the deposit to the vendor credit:

 

  1. Click the Plus (+) icon.
  2. Select Expense or Check.
  3. In the Choose a payee drop-down, select the vendor name.
  4. From the Add to Expense section, select Add for the outstanding vendor credit and deposit.
  5. Click Save and close.

I've got you an article for your reference: Manage Vendor Credits.

 

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help

 

Please know that the Community is always here, so please let us know if you need anything. Have a good one!

Experienced Member

Re: Quickbooks' handling of Georgia Sales Tax is not correct. There is no longer a way to post the vendor's compensation discount.

I am an accountant and my client only has sales in Georgia.  Georgia Dept. of Revenue gives you a 3% discount for paying sales tax timely.  QB previously let you enter this discount while posting the payment of sales tax.  Now it does not.  I realize I can make a journal entry to correct this, but that's really not an improvement.  Additionally, QB has to realize that we do not still "owe" taxes for the amount of discount received. 

QuickBooks Team

Re: Quickbooks' handling of Georgia Sales Tax is not correct. There is no longer a way to post th...

Thanks for providing additional information regarding your concern, @Linda64.


In QuickBooks Online, you can make an adjustment to decrease and increase the amount of sales tax owed by entering discounts, fines, interests or credits. To do so, simply click the blue + Add an adjustment link on the Review your sales tax window. 


Here’s how:

  1. From the Sales Tax page, click View return for Georgia.
  2. Click the + Add an adjustment link on the Review your sales tax window.
  3. Select a Reason, Account and Amount of the adjustment, then click Add. QuickBooks should provide you the remaining tax due amount on the screen.
  4. Proceed to pay the sales tax amount.

sales tax 1.PNG sales tax 2.PNG sales tax 3.PNG sales tax 4.PNG

 

After entering the discount, QBO will no longer show the amount as sales tax owed. For more information about the process, go to record or adjust a tax payment section on this article: Manage sales tax payments


That should get you pointed in the right direction. 


Let me know how this goes and if you need anything else. I’m more than happy to help. Have a great day!