NYS Sale Tax - vendor collection credit

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

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!

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:

• Enter a refund from a vendor
• Applying vendor credits

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.

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 

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.