Workaround/Hack for Sales Tax Prepayments

Hi there, Joe!

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Thanks! I will try your workaround. 

The state of CA requires monthly pre-payments for quarterly filers. The QBO advice I have found is to use the "add an adjustment" feature which only allows you to post your payment to an expense account and not the liability account. This is not helpful!

I've even watched videos of people advising just to wait until the quarter ends to record your payments from previous months. For someone who likes to reconcile their checking account monthly, this is not helpful either!

This really needs to be fixed by QBO, a verify inadequate system.  They should allow payments to be posted to the period when its still open.  Monthly isn't a great option especially if there are adjustments to the months before the quarter end.  My hack work around is I have a secondary sales tax payable account. I post the payment to there.  I also have a sales tax adjustment account in income.  Then in the sales tax system I post a "prior prepayment" and post it to that account.  Then I post a JE to reduce the sales tax payable account. Alternatively you can set it up as an expense and record it to a sales tax adjustment expense account.   Either way will work, zeroing out the sales tax payable account and the expense or income account you set up.  Shouldn't have to be so dificult!

Oh my god, I have been having the same issue. This function to enter prepayment was working for many years, just recently I see the option is gone.  and the idea to use expense account is so so strange and random

So my workaround is to change that to monthly, but at the time of entering the final amount for the quarter, I change that to quarterly ( changing back and forth, unfortunately), so I can see all the debits and credits in one shot. This is so strange that we have to come up with all these extra work, just for a simple prepayment entry!