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Level 1

Sales tax adjustment not taking

My sales tax liability report is showing the wrong amount. I click "Adjust" and jump through the hoops, but when I return to the Pay Sales Tax window, the incorrect amount still appears. I've gone ahead and completed the transaction but the adjustment is not reflected in the payment amount as shown in the check register.

Solved
Best answer December 10, 2018

Best Answers
Highlighted
Level 1

Sales tax adjustment not taking

Solved! I was erroneously assigning my Sales Tax Payable (a current liability account) as the adjustment account. It requires an expense account so I created a Sales Tax Adjustment expense account. All is right with the world :)

View solution in original post

13 Comments
Highlighted
Level 1

Sales tax adjustment not taking

Solved! I was erroneously assigning my Sales Tax Payable (a current liability account) as the adjustment account. It requires an expense account so I created a Sales Tax Adjustment expense account. All is right with the world :)

View solution in original post

Highlighted
QuickBooks Team

Sales tax adjustment not taking

Hi there, Fretking.

Glad to hear that everything is fine in your end.

Don't hesitate to post back again in Community whenever you have concerns. Have a good day!
Highlighted
Level 1

Sales tax adjustment not taking

I tried that and there is still a liability showing up in "Pay Sales Tax". I wanted to reduce my sales tax liab. I used the "Adjust Sales Tax Liability". Marked the appropriate boxes.  This resulted in a journal entry that  debited Sales tax and credited my expense account "Adjust to Actual".  It lowers the amount in the sales tax payable account but it does not change the totals when you bring up "Pay Sales Tax".

Any suggestions?
Highlighted
Level 1

Sales tax adjustment not taking

I have the same questions! I am hoping someone on here has an answer?

Highlighted
QuickBooks Team

Sales tax adjustment not taking

Hi there, kpeterson.

 

Thank you for reaching out to the Community. 

 

I've tried adjusting the sales tax on my end, and it changed the "Pay Sales Tax" totals. In your case, since you're experiencing unexpected QuickBooks behavior, I recommend giving our phone support a call.

 

Checking the root cause of this requires tools, like screen sharing, that only the phone support team has and they can also create an investigation ticket if there are other customers experiencing the same thing.

  1. Log into your QuickBooks Desktop and go to the Home screen.
  2. On your keyboard, click F1.
  3. Click Contact us.

 

Let me know the result or how the call goes, kpeterson. I want to make sure this is taken care of. Have a good one.

Highlighted
Level 1

Sales tax adjustment not taking

I am having the same problem when I try to reduce the amount of sales tax.  When I increase the amount, there is no problem.

Highlighted
QuickBooks Team

Sales tax adjustment not taking

What specific error/problem are you getting, DukeHoopFan?

 

If you're looking to decrease the sales tax amount, you'll want use a Credit Memo. Here's how:

  1. Click Customers, then select Create Credit Memos/Refunds.
  2. Select a customer name. In the Item column, select the first empty line then choose the sales tax item you want to adjust.
  3. In the Amount column, enter the amount of the adjustment then press Tab or Enter.
  4. Click OK when you receive the message "Changing the amount of a tax line item may cause your sales tax reports to be incorrect."
  5. Select the next empty line then select a Discount item.
  6. In the Amount column, enter the total amount equal to the adjustment(s) entered in the previous line.
  7. In the Tax column, select Tax.
  8. Verify that the total amount is $0.00.
  9. Click Save & Close.

To adjust your sales tax due, you can choose the Reduce Sales Tax By radio button on the Sales Tax Adjustment screen.

 

The details about sales tax adjustment are found in this article: Process sales tax adjustment.

 

Let me know if you have more questions. I'd be glad to help you some more.

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Level 1

Sales tax adjustment not taking

it's ot taking taxes out of the payroll

 

Highlighted
QuickBooks Team

Sales tax adjustment not taking

Thanks for joining this thread, nutek2010.


Allow me to chime in and help ensure taxes are calculated on your payroll.


To get around the issue, we’ll perform some basic troubleshooting steps. First, download the latest payroll tax table.

 

These updates will provide the most current and accurate rates and calculations for supported state and federal tax tables, payroll tax forms and e-file and payment options. Next, refresh the paycheck information by reverting it.

 

The process is a breeze and I’ll guide you how.

 

  1. Choose the Employees tab at the top menu bar, then choose the Payroll Center.
  2. On the Pay Employees tab, select how you run payroll (Unscheduled or Scheduled).
  3. On the Enter Payroll Information page, mark the employee's name. 
    rev.png
  4. Right-click the name of the employee which highlighted in yellow.
  5. Select Revert Paycheck.

You’ll have to perform the same process for each paycheck. Once done, open it to see if taxes are taking out.


For more in-depth troubleshooting steps, check out the QuickBooks Desktop calculates wages and/or payroll taxes incorrectly article.


These steps should help you get back to business in no time.


Let me know if you get the chance to try all these suggestions and what the results are. I'll be right here with you.

 

Highlighted
Level 1

Sales tax adjustment not taking

I have a similar question.  In using the Pay Tax link, I have entered tax payments.  When I make adjustments for the discounts for early payment that my state offers, it does show the correct amount to be paid in that window.  However, when I check the bank register, it is showing the original amount instead of the adjusted amount.  It also shows a payment in the amount of the adjustment in a separate line item, therefore making the amount deducted from the bank register incorrect.  There is also an instance where it shows the tax payment as a deposit instead of a payment.  I have double checked the entries and they are correct in the Pay Tax link, clicked on reduce the tax payment, etc.  Any suggestions on how to correct this and what would have caused a tax payment to post as a deposit?

Highlighted
QuickBooks Team

Sales tax adjustment not taking

Thank you for posting here in the Community, @athensmobileattic,

 

Let me share some tips to correct your sales adjustment and payment.

 

First, let's check if the previous adjustment and payment are correct by deleting and recreating it.

 

Once you're able to remove all the entries, try to recreate them using these steps:

  1. Go to the Vendors menu and select Sales Tax.
  2. Select Adjust Sales Tax Due.
  3. Enter the date you want to affect the adjustment.
  4. (Optional) Add an Entry No and Class.
  5. In the Adjustment Account, use an Income account if you received a discount/credit or a negative rounding error. However, use an Expense account for penalties, fines and entering a positive rounding error.
  6. In the Adjustment section, select the option to reduce sales tax then enter the adjustment amount.
  7. Add a Memo, then hit OK.

You may refer to this article for detailed information about processing tax adjustments: Process sales tax adjustment

 

Next, pay your sales tax again. Here's how:

  1. Go to the Vendors menu, then select the Pay Sales Tax option.
  2. Choose an account in the Pay From Account drop-down for the tax payment.
  3. In the Show sales tax due through field, make sure the date is correct.
  4. The list shows all the sales taxes your company owes. If the list is empty, you may not have set up sales correctly.
  5. Select Adjust if you need to make adjustments.
  6. Select OK.

Let me know the result once you've tried the steps or if you require additional help with this process. I'd be more than willing to lend you a hand anytime. Have a good one!

Highlighted
Level 1

Sales tax adjustment not taking

did you every get this to work correctly? 

 

we are having the SAME problem, dated back to our March, 2020 tax payment.

 

When you "Pay Sales Tax" and try to make an adjustment or use the credits listed, the check register does not show the discounted amount... thus the check register is off.  I have done this many times before, (we have been using quickbooks since 2004) and never have this happened till March 2020.

Highlighted
QuickBooks Team

Sales tax adjustment not taking

We want this fixed for you, BurlingtonTruck.

 

You can try the recommended steps provided by my colleagues. 

 

If you're still encountering the same issue, though, I'd suggest reaching out to our customer care support. An agent has more tools the help you. Here's how:

  1. Click Help inside QuickBooks.
  2. Go to QuickBooks Desktop Help.
  3. Click Contact Us
  4. Enter "Register off when making an adjustment or using the credits" in the description field, then click Continue.
  5. Select either Message an Agent or Talk to a Specialist

Don't hesitate to get back to us if you have other concerns. You're always welcome to post in the Community.

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