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Level 1

How to make sales tax adjustment *decrease* for rounding and/or vendor compensation?

Can someone please help me make adjustments to decrease the calculated sales tax liability?  Due to rounding and/or the vendor compensation deduction, the liability needs to be decreased.  When I try to make the adjustment in QBO, it only allows for an increase.  Thank you

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Best answer 06-18-2019

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QuickBooks Team

Re: How to make sales tax adjustment *decrease* for rounding and/or vendor compensation?

Hi there, @nolac.

 

You can decrease your sales tax liability by choosing an income account instead of an expense. Let me add further details about this and help you further.

 

In the Automated Sales Tax center, you're only able to enter a positive amount. But you can still decrease your liability by choosing an income account when creating an adjustment.

 

You can follow the steps below in decreasing your liability:

  1. Click on Taxes from the left panel.
  2. Beside the state, click on View Return.
  3. Choose +Add an adjustment.
  4. Enter the Reason.
  5. Choose an income account under the Account drop-down.
  6. Enter the Amount for the adjustment.

For further guidance, you can read this article: Create or Delete a Sales Tax Adjustment.

 

Also, you can visit our Help Articles page if you want to learn some "How do I" steps.

 

Please know that you can tag me in your comment if you have any other questions or concerns. I'll be here to help.

View solution in original post

1 Comment
Highlighted
QuickBooks Team

Re: How to make sales tax adjustment *decrease* for rounding and/or vendor compensation?

Hi there, @nolac.

 

You can decrease your sales tax liability by choosing an income account instead of an expense. Let me add further details about this and help you further.

 

In the Automated Sales Tax center, you're only able to enter a positive amount. But you can still decrease your liability by choosing an income account when creating an adjustment.

 

You can follow the steps below in decreasing your liability:

  1. Click on Taxes from the left panel.
  2. Beside the state, click on View Return.
  3. Choose +Add an adjustment.
  4. Enter the Reason.
  5. Choose an income account under the Account drop-down.
  6. Enter the Amount for the adjustment.

For further guidance, you can read this article: Create or Delete a Sales Tax Adjustment.

 

Also, you can visit our Help Articles page if you want to learn some "How do I" steps.

 

Please know that you can tag me in your comment if you have any other questions or concerns. I'll be here to help.

View solution in original post

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