We are a cash basis on our accounting. So a customers first payment bounced $14,797.41, and they reissued a second payment in the same amount that went through successfully. Now when it comes to doing my Sales Tax I noticed that on the Gross Total Column it reflects the total of both payments made is this correct? I would think since once deposit bounced that in the Gross Total column it would only reflect one deposit.
Sales Tax Report / Cash Basis / Gross Total / Dallas City - $29,594.82 (14,797.41 x 2)
Hello @brendam24.
It seems quite odd that the report is adding up both the bounced payment and the successful reissue, showing a Gross Total of $29,594.82. Since only one payment was successfully received, this shouldn't be the case. Let’s address this to ensure your records reflect the accurate amount.
In QuickBooks Online using a cash-basis accounting system, transactions are recorded when the actual payment is received. For your situation, though the first payment bounced, and no money was effectively received, QuickBooks might still display both the bounced payment and the successful replacement in your reports, if both transactions are recorded.
To ensure your reports accurately reflect your cash flow and correct sales tax calculations, you might need to adjust the entries related to the bounced payment. It’s important to make sure that only the successful payment is included in the Gross Total for your Sales Tax Liability.
Please review this screenshot to see how you can make an adjustment or add a prepayment.
For your complete guide open this article: Create or delete a sales tax adjustment in QuickBooks Online.
For your future reference open this link: File your sales tax return and record sales tax payments in QuickBooks Online.
If you need further clarification or assistance with your tax liability, feel free to reach out. I’m here to support you every step of the way.
The only thing is that I don't have to adjust what I am paying in Sales Tax Liability because that is correct. What I am saying is that the amount shown n Gross Total doesn't seem correct. Why would QBO be thinking I actually kept two payments in the amount of $14,797.41 when only one was successful. Here are some screenshots.
The way I recorded the bounced check was as shown here in this link.
The thing is my actual sale tax liability is correct. What I don't find correct is the number being reported in Gross Sales Colum. I only received funds for one payment only so why does QBO count the bounced check in the Gross Total. I have attached some screen shots of what I am trying to explain I hope that helps.
I recorded the bounced check just like shown on here:
Thank you for providing additional details about your issue, brendam24. I understand while your actual sales tax liability appears correct, you're noticing discrepancies in the Gross Sales Column. Let's work together to address this issue and find the optimal solution for your situation.
In QuickBooks Online (QBO), the Gross Total represents the total amount of all recorded sales transactions, including successful payments and those initially recorded but later bounced. If the bounced check was applied to an invoice, QBO may still count that amount as part of your gross sales, resulting in the inflated total you're observing.
To accurately reflect only the successful payments in your Gross Total, it's crucial to ensure the bounced check is properly recorded. I recommend using an Expense entry to record bounced checks instead of adjusting the invoices. This approach prevents double counting in your Gross Total and ensures only actual payments received are included in your sales tax calculations. Here's a step-by-step guide to implement this method:
Step 1: Recategorize the bounced payment to reopen the original invoice.
This action creates an expense entry, accounting for the deducted money and maintaining accurate records. It also offsets the unpaid invoice. If you don't have a bank connected to QuickBooks or the returned payment hasn't appeared yet, you can create an expense for this transaction and match it to your bank later.
Step 2: Unapply the bounced check payment from the original invoice.
For more detailed instructions, refer to this article: Record a returned payment or bounced check in QuickBooks Online.
Additionally, for guidance on filing your sales tax return and recording your sales tax payment, you may find this article helpful: File your sales tax return and record sales tax payments in QuickBooks Online.
I hope this explanation clarifies the discrepancy in your Gross Total. If you need assistance reviewing your existing entries or adjusting your process for recording bounced checks or other QBO-related concerns, please don’t hesitate to reach out. We are here to ensure the QBO experience is as smooth and accurate as possible.
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