How to make sales tax adjustment *increase* for round up by state?

Some months, I get a Vendor Discount from the State that I'm paying sales tax too.  I may also have to Pay Use Tax and adjust a few cents for rounding when finalizing the month's sales tax.  What is the best way to document this in QBO?  I'm currently just doing the "SUM/DIFFERENCE" adjustment and noting it all on my paperwork.  Is there a way to make multiple payment recordings in QBO for the state each month that would document each of these?

I keep trying to do this.  The amount that QB is showing is just pennies more then what the state is calculating.   When I try to make an adjustment due to rounding error, I keep getting the message "The value is out of range, please put in a positive value"   I tried that and it doubled my problem.  I was $.03 off now I'm $.06 off.  

Help!

Hello there, cjbondy.

Allow me to step in and provide some information about making sales tax adjustment in QuickBooks Desktop.

You do not use sales tax payable for the adjustment account. If you're making adjustment because you received a discount/credit or if you are entering a negative rounding error, you choose Income account. If it's for the adjustment because you need to add penalties and fines or if you are entering a positive rounding error.

Here's how you adjust sales tax due:

1. From the Vendors menu, click Sales Tax.
2. Choose Adjust Sales Tax Due.
3. In the Sales Tax Adjustment window, enter the necessary information.
4. In the Adjustment section, choose if you need to increase or reduce sales tax then enter the adjustment amount.
5. In the Memo field, enter any additional note.
6. Click OK.

For more information about the process sales tax adjustment, you can check out this article.

Let me know if you have any other questions about this. I'd be happy to help clarify things out.

How would you correct this same problem in QBO?

It's good to see you here, tjmand4,

Let me help share information on how to make Sales tax adjustment in QuickBooks Online. 

Here's what you'll need to do:

1. Click the Taxes menu from the left menu.
2. Select the agency you're recording the payment.
3. Click Record Tax Payment.
4. Fill all the necessary information.
5. Mark the Make Adjustment box, then enter information about the adjustment.
6. Select Record Tax Payment.

Here's a great resource that you can check on for more detailed steps: Manage Sales Tax Payment.

However, if you're using the Automated Sales Tax feature, here's how to make Sales tax adjustment:

1. Click the Taxes menu from the left menu.
2. Select the agency you're paying.
3. Click View return.
4. Click the + Add an adjustment link.
5. Enter the reason for the adjustment, the account and the amount.
6. Once done, select Record payment.

You can check out this article fro more detailed steps: Set up and use Automated Sales Tax.

If there's anything else you need help with in adjusting Sales tax, please feel free to reach back out. Have a great day!

How do I change the class of the adjustment?

Hello there, Kmount.

If you're using QuickBooks Online, we're unable to add or change a class to a sales tax adjustment.

I suggest sending feedback directly to our product engineers. This will help us know the features our customers want. You can do that by clicking the Gear icon, then choosing Feedback. 

Though, if you're using the Desktop version, you can change the class. Here's how:

1. Click Lists.
2. Go to Chart of Accounts.
3. Look for the adjustment account, then double click to open.
4. In the Account QuickReport window, double click on the sales tax adjustment.
5. Double click again on the sales tax journal. 
6. Change the class, then click Save & Close. 

Reach out to us if you have other sales tax concerns. Have a good one! 

I clearly understand all of the comments, but have a related question.

When I do this, QB says that it applies the adjustment to all the sales tax districts.  How can I apply it to the district which I need to adjust (I did find our error down to the invoice)?  Or, is it not necessary to do so?

In CA, we input how much we pay to each district so it would be good to be able to adjust to a particular district so that my adjusted Sales Tax Liability Report will match what I input on our state tax payment website.

Did that make sense?!?

Hi there, SoBizzy.

At the moment we can only do the adjustment on the return, which you say will affect other districts. You can reach out to our phone or chat team for options to calculate your tax. You can reach them through these steps:

1. Click on Help and choose Contact us.
2. Enter short detail of your concern and click on Let's talk.
3. Choose from Chat or Get a callback.

If there's anything that I can help, feel free to reply below.

Will do, thank you for the quick response.  Where can I go to make this a suggestion for future software versions?  I think it is really important for us to be able to adjust QB so that it matches reporting to our tax authority.

Hello there, SoBizzy.

Product suggestions are used by our engineers in considering for their future updates. The more suggestions of this feature, the more chances that this will be included on their updates.

I'd make sure to send this suggestion for you. Our engineers can look into it.

We'd keep working to improve our product and services. Let me know if you need anything else.

Hello!

I have a question....

I want to Adjust Sales Tax Due, need to decrease Sales Tax Due. I created an Income account and now wondering for the amount- to use positive number? Quickbooks Online doesn’t allows me to use negative number there... 

Yes, you'll use a positive number, ZG10.

Our system will automatically calculate the adjustment depending on the reason. If you'll use Credit or Prior prepayments, it will deduct from the tax due. While, if you'll use Pre payments and Other (penalties, interest, rounding errors), it will add from the tax due. Check my screenshot below so you'll know how it looks like.

I'll share to you the article about creating or deleting a sales tax adjustment for more information. 

If anything comes up, let us know. We're right here for you. 

I have a new Point of Sale that is not currently connected to quickbooks. Is there a way to adjust the Sales Tax Payable manually so that I won't have to enter each transaction manually. 

Hello, phil4550.

Thanks for joining the thread and posting your question here in the Community space.

If you'd want to manually enter sales tax in your QuickBooks account for you not to be able to manually enter transactions, then this is currently unavailable. You can import transactions with sales tax for you to be able to file and generate a report for it. Since QuickBooks POS cannot prepare Sales Tax Return for that.

If you wish to have sales tax prepared by QuickBooks, then you'll need to enter transactions since sales tax will be automatically generated.

In case you have other questions about QuickBooks Point Of Sales (POS), here's a great resource that you can read: QuickBooks Desktop Point of Sale User Guide.

You're always welcome to visit the Community again if you have any other questions. I'd be more than happy to help. Take care.

How ridiculous that sales tax adjustments cannot be classified in QBO.  Every single transaction that we record gets a class assigned so now we have these adjustments just floating out there, not captured in our reports.

Hi there and what would happen if you have to pay less what would be the adjustment account to use? as I am doing this adjustment to reduce the sales tax for bad debt.