Applied Credits and Sales Tax Issues

We've got the detailed steps to help you fix applied credits and sales tax issues in your account, AnnaSel.

I've seen that you've posted twice in this forum with the same concern. Don't worry, my colleague has already provided a solution for you to guide you in managing your taxes. Feel free to visit this link: https://quickbooks.intuit.com/learn-support/en-us/taxes/applied-credits-and-sales-tax-issues/01/1480...

We'll keep this thread available for any additional queries you have when managing these data in your QuickBooks account. Keep safe!

Thank you for trying to help me. Let me please explain these issues more clearly:

1. I use QB desktop.

2. I think the problem is when I apply any credits (overpayment or credit-memo) to invoices this transaction is recording automatically as a payment on invoice date, not when I did it. It may be old invoice in past. And it influents on Sales Tax Liability Report in past.

How can I change the date of this transaction on current date?

Thank you for trying to help me. Let me please explain these issues more clearly:

1. I use QB desktop.

2. I think the problem is when I apply any credits (overpayment or credit-memo) to invoices this transaction is recording automatically as a payment on invoice date, not when I did it. It may be old invoices in past. And its influents on Sales Tax Liability Report in past.
How can I change the date of this transaction on current date?

I appreciate your detailed response, AnnaSel. Let me share some details about the sales tax report in QuickBooks.

In QuickBooks Desktop (QBDT), the data displayed in reports depends on the transactions entered into the program. The Sales Tax Liability report only shows the summary of your taxable and non-taxable sales, as well as the total sales tax collected from customers. Consequently, applying credits or refunds to invoices will not affect this report.

However, if you use an accrual accounting method, this could affect your sales tax liability report. Under the accrual basis method, you report your income when you issue an invoice or when the sale occurs, regardless of when you receive payment.

If your report shows an increase, verify the reporting period and report basis. Double-click the amount icon on the Sales Tax Liability report to check the transactions causing the increase. Please see the screenshot below for reference:

For more details about reviewing your sales tax report and report basis, see these articles: 

• Review sales tax reports
• Differentiate Cash and Accrual basis

I'll be adding these articles that will help fix common issues when running the Sales Tax Liability report in QuickBooks Desktop:

• Sales Tax Liability Report: Total sales is different from total income
• How to fix common issues when running a Sales Tax Liability report

If you have any further questions or concerns about sales tax reports, please don't hesitate to reach out. I'm here to help. Take care and have a great day.

Thank you.
But before asking you I already did and analyzed all from what you advise me. Let me ask you other way.
Company uses Accrual method for income and Cash method for Sales Tax Liability report.
Case 1:
06/28/2024 - I created invoice #1111 amount $1170.67.
07/10/2024 - I got check #12345 amount $1170.67
QB recorded it as a payment $1170.67 on 07/10/24.
And when I will create Sales Tax Liability report for July 2024 and I can see this payment increase our Total Sales and etc. I will pay Sales Tax in August for July. On my opinion. in this case everything is correctly.

Case 2:
06/28/2024 - I created invoice #1111 amount $1170.67.
07/10/2024 - I got check #12345 $1116.71, applied to invoice #1111 and applied credits $53.96 (it was overpayment on 03/04/2024).
QB recorded it as a 2 payment: $1116.71 on 07/10/24 and $53.96 on 06/28/2024.
Is it correct that QB automatically recorded applied credit as a payment dated 06/28/2024 chose invoice date not date when I did it? June already was closed. I did it in July and can't change or choose date for applied credits. This is increasing our Total Sales and etc. in June after filed Sales Tax report and paid.
Is it correct? How can I fix it?

Thanks for your response to the post, @AnnaSel.

Let me provide the information regarding the sales tax liability report.

Yes, it’s correct that QuickBooks automatically applied the credit as a payment. I just want to confirm if this is the expected behavior of the program. If it is, you can make an adjustment for correction by performing a Sales Tax Liability Adjustment.

I’ll include these articles to assist in addressing frequent issues encountered when generating the Sales Tax Liability report in QuickBooks Desktop:

• Sales Tax Liability Report: Total sales is different from total income
• How to fix common issues when running a Sales Tax Liability report

If you have any more questions or need assistance with sales tax reports, feel free to contact me. I’m here to assist you. Have a wonderful day!

Of course, it’s correct that QuickBooks automatically applied the credit as a payment.

But the problem is what date this transaction recording.

I think it should be date when I do it. It means current date. Not date in past.

Thanks for getting back with the Community, AnnaSel.

Currently, there isn't a process for adding an invoice's payment/credit date to Sales Tax Liability reports. Your report is working as designed.

I can certainly understand how an ability to include your actual payment/credit dates on Sales Tax Liability reports could be useful and have submitted a suggestion about it as of today.

You can also submit your own feature requests while signed in.

Here's how:

1. In the top menu bar, go to Help, Send Feedback Online, then Product Suggestion....
   
   
    
2. Choose a Type of Feedback and Product Area (optional) from your available drop-down menus.
   
   
    
3. Enter any suggestions/feedback in the Here is my suggestion: field.
   
   
    
4. If you'd like, include your name/email in the My name is: (optional) and My e-mail address is: (optional) fields.
   
   
    
5. Select Send Feedback.
   
   

Your feedback's definitely valuable to Intuit. It will be reviewed by our Product Development team and considered in future updates. You can stay up-to-date with the latest news about your product by reviewing Intuit's Product Updates webpage.

As a workaround, you can pull up the invoice and view its history by clicking your See History option.

I've also included a detailed resource about working with reports which may come in handy moving forward: Export reports as Excel workbooks

Please don't hesitate to send a reply if there's any additional questions. Have an awesome Tuesday!

Thank you so much for your help!

Hello, AnnaSel.

We in the Community are extremely happy that you were able to find my colleague's post helpful. We're more than happy to help you if you need more assistance.

If you need tips and resources to manage your QuickBooks Desktop account and finances, feel free to visit our Support page to learn more. This provides information to help your navigation experience be more effective.

Keep us posted if you have other questions or concerns. I’m here to help you out. Take care and have a great day!