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wk249
Level 2

Sales tax adjustment

I’m having a small discrepancy between sales tax due calculated by quick books and sales tax due from my state. Quickbooks is basically saying I owe $3.34 more, however I completely paid the state the right amount. Im trying to make an adjustment to decrease the sales tax by $3.34, but Im not sure which account to select.

Solved
Best answer June 11, 2021

Best Answers
Rea_M
QuickBooks Team

Sales tax adjustment

Selecting the appropriate account for sales tax adjustment in QuickBooks Online is easy, and I'm here to show you how, @wk249.

 

When you need to decrease your sales tax due, you'll have to use an income account type for your adjustment. In case you don't have one yet, here's how to set up:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Click the New button.
  4. From the Account Type drop-down, select Income.
  5. Select the account’s Detail Type. Use Sales of Product Income for an income account.
  6. Name your adjustment account (i.e., Sales tax due decrease).
  7. Select Save and Close.

 

I've attached a screenshot below that shows the last four steps.

86.PNG

 

After that, you're now set to add an adjustment to your sales tax payment. Please see the screenshot below for your reference.

 

 

Also, you can pull up the Sales Tax Liability report. This will help you effectively monitor your sales tax collection and the amount you owe to the tax agencies before filing your returns. To do this, just go to the Sales tax section from the Reports menu's Standard tab.

 

In case you have other sales tax concerns, just drop your comments below and I'll be glad to help. Take care and stay safe always.

View solution in original post

2 Comments 2
Rea_M
QuickBooks Team

Sales tax adjustment

Selecting the appropriate account for sales tax adjustment in QuickBooks Online is easy, and I'm here to show you how, @wk249.

 

When you need to decrease your sales tax due, you'll have to use an income account type for your adjustment. In case you don't have one yet, here's how to set up:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Click the New button.
  4. From the Account Type drop-down, select Income.
  5. Select the account’s Detail Type. Use Sales of Product Income for an income account.
  6. Name your adjustment account (i.e., Sales tax due decrease).
  7. Select Save and Close.

 

I've attached a screenshot below that shows the last four steps.

86.PNG

 

After that, you're now set to add an adjustment to your sales tax payment. Please see the screenshot below for your reference.

 

 

Also, you can pull up the Sales Tax Liability report. This will help you effectively monitor your sales tax collection and the amount you owe to the tax agencies before filing your returns. To do this, just go to the Sales tax section from the Reports menu's Standard tab.

 

In case you have other sales tax concerns, just drop your comments below and I'll be glad to help. Take care and stay safe always.

View solution in original post

wk249
Level 2

Sales tax adjustment

worked perfectly. thanks.

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