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Angel8
Level 1

NYS Sale Tax - vendor collection credit

When I file the sales tax return and pay the full amount due on time, I received
a vendor collection credit. This credit reduces the amount due I send to New York State with the sales tax return. I made the adjustment in Quickbooks using the sale tax adjustment under the vendor menu. My question is this early payment credit taxable on the company income tax return?

 

 

Solved
Best answer January 21, 2020

Best Answers
Angel8
Level 1

NYS Sale Tax - vendor collection credit

Thank you Rustler

View solution in original post

7 Comments
Rustler
Level 15

NYS Sale Tax - vendor collection credit

yes it is, use other income as the source account for the credit

Angel8
Level 1

NYS Sale Tax - vendor collection credit

Thank you Rustler

View solution in original post

tomegranate
Level 1

NYS Sale Tax - vendor collection credit

Hello -


Can you walk me through your process of recognizing the vendor collection credit? I cant figure out how to use this using QB online 

 

Thank you!!

 

Tom 

tomegranate
Level 1

NYS Sale Tax - vendor collection credit

Hello,

 

Can you walk me through your process of recognizing the vendor credit as other income? I cant figure out how to do this in QB online


Thanks!

IamjuViel
QuickBooks Team

NYS Sale Tax - vendor collection credit

Hello, @tomegranate.

 

You can deposit the vendor credit you've received and use Other Income as its source account. Let me guide you in doing so.

  1. Go to New (+).
  2. Select Bank Deposit.
  3. Choose the Bank Account where the vendor credit is posted.
  4. From the Add funds to this deposit section, enter the vendor credit details.
  5. Pick Other Income in the Account column.
  6. Click the Save and Close button.

You can read through these articles to learn more about managing your vendor-related transactions:

Feel free to leave a comment below if you have follow-up questions about recording refund transactions in QuickBooks. I'm always here to help.

tomegranate
Level 1

NYS Sale Tax - vendor collection credit

The problem is its not actually 'received income' . Basically, if i owe $100 in sales tax to NY state but i file on time, they give me a 5% discount. So, i only have to pay $95. However the sales tax function in QB online thinks i need to pay $100. So i am trying to figure out how i can book an entry or something where i can show that even though i collected $100 in sales tax, and my NY state tax liability for the period is $100 i only need to pay $95 to the department of taxation and the other $5 i can recognize as income 

McDonald14904
Level 1

NYS Sale Tax - vendor collection credit

I processed the payment in quickbooks for the amount of actual sales tax owed, then did a general journal entry that credited the vendor collection credit back to my checking account, and created an income account just for this titled "sales tax collection credit" to balance and keep track of it.

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