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bwaugh1986
Level 2

Sales Tax collected and Sales Tax payable

I am working on my sales tax for November. I noticed that my Tax Collected column matches what I am to pay on the comptroller website but my sales tax payable column is a different amount. With that said the amount is off by the dollar amount I paid last month. I am not sure what was done to show last month's payment in that way. 

Solved
Best answer December 19, 2018

Best Answers
Rasa-LilaM
QuickBooks Team

Sales Tax collected and Sales Tax payable

Hello again, bwaugh1986.


Thanks for performing the steps I provided to resolve the sales tax discrepancy and updating me on what happened.


Let’s try some new steps to fix this. To begin, open the Sales Tax Liability Report and enter the correct period. This is to determine if the payment was applied to a different period.


To run the report:

 

  1. Go to Reports on the left panel.
  2. Enter Sales Tax Liability Report in the search field.
  3. Click on the drop-down for Report period, and select the correct date.
  4. Select Run Report.
  5. Go to the Taxable Amount column, and click on the amount to see the details.
  6. Then review all the transactions.

If the payment is recorded to the correct date, I recommend you get in touch with our QuickBooks Online Support Team. They have the tools to trace where the issue is coming from.


Once identified, they’ll provide solutions to correct your records. In addition, check the accounting basis used when checking the sales tax owed since it affects the amount of sales tax you owe for each period.

 

For more insights, check out this article: Cash vs Accrual accounting and its effect on sales tax.
I also added a link that provides information on how QBO calculates sales tax: The QuickBooks Blog.


After contacting our phone support, the tax collected and tax payable will show the same amount.


Reach out to me if you have questions about managing transactions in QBO. I'll be happy to answer them. Wishing you the best.

View solution in original post

11 Comments
Rasa-LilaM
QuickBooks Team

Sales Tax collected and Sales Tax payable

Hey there, bwaugh1986.

 

I’m here to help determine why the tax collected doesn’t match with the tax payable column.


If you're using the desktop version, this issue may happen when the Sales Tax Liability Report and Pay Sales Tax window don’t have the same date ranges or report basis. Let's perform some troubleshooting steps to resolve this.


The first thing to do is open the Sales Tax Liability Report. Then, make sure the ending date matches with the date in the Show sales tax due field.

 

Here’s how:

 

  1. Go to Reports at the top menu bar, and select Vendors & Payables.
  2. Choose Sales Tax Liability.
  3. Delete the From date, and ensure the To date on the report matches the date in the Show sales tax due through box on the Pay Sales Tax window.
  4. From there, review the amount.

If you get the same result, check the Sales Tax Preference and make sure the reporting basis are the same. I'll guide you through the steps.

 

To change the reporting preference:

 

  1. Go to the QuickBooks Edit menu, and select Preferences.
  2. Choose Sales Tax.
  3. On the Company Preferences tab, note the selected basis in the When do you owe sales tax? box.

    •    As of invoice date - Accrual basis
    •    Upon receipt of payment - Cash basis.

  4. Ensure the STLR basis matches the preference.

If the issue persists, you can refer to the Sales Tax Liability Report and Pay Sales Tax window do not match article for further troubleshooting steps. Make sure to go directly to the Audit the Sales Tax Payable Account for section.

 

However, if you're using QuickBooks Online, create a sales tax adjustment to correct the amount. You'll find the detailed instructions through this link and go directly to the Sales tax adjustment section.

 

That'll do it. By performing these steps, the sales tax collected and sales tax payable will show the same amount.

 

Reach out to me directly if you have questions about QBO. Please know that I'm here to lend a helping hand. Wishing you the best.

bwaugh1986
Level 2

Sales Tax collected and Sales Tax payable

I have done all of the suggested above and still do not understand why my "tax collected" is different from my "tax payable". I am also dealing with the difference between the two columns are the exact dollar amount as the previous month's payment.  I need something outside of an automatic answer. 

Rasa-LilaM
QuickBooks Team

Sales Tax collected and Sales Tax payable

Hello again, bwaugh1986.


Thanks for performing the steps I provided to resolve the sales tax discrepancy and updating me on what happened.


Let’s try some new steps to fix this. To begin, open the Sales Tax Liability Report and enter the correct period. This is to determine if the payment was applied to a different period.


To run the report:

 

  1. Go to Reports on the left panel.
  2. Enter Sales Tax Liability Report in the search field.
  3. Click on the drop-down for Report period, and select the correct date.
  4. Select Run Report.
  5. Go to the Taxable Amount column, and click on the amount to see the details.
  6. Then review all the transactions.

If the payment is recorded to the correct date, I recommend you get in touch with our QuickBooks Online Support Team. They have the tools to trace where the issue is coming from.


Once identified, they’ll provide solutions to correct your records. In addition, check the accounting basis used when checking the sales tax owed since it affects the amount of sales tax you owe for each period.

 

For more insights, check out this article: Cash vs Accrual accounting and its effect on sales tax.
I also added a link that provides information on how QBO calculates sales tax: The QuickBooks Blog.


After contacting our phone support, the tax collected and tax payable will show the same amount.


Reach out to me if you have questions about managing transactions in QBO. I'll be happy to answer them. Wishing you the best.

View solution in original post

KRing
Level 1

Sales Tax collected and Sales Tax payable

Rasa! 

 

YOU are a genius. Thank you so very much :-)

accountant_fos
Level 1

Sales Tax collected and Sales Tax payable

Hi 

 

JessT
QuickBooks Team

Sales Tax collected and Sales Tax payable

Hi accountant_fos!

 

Sure you can ask a question here. I'm jumping in since Rasa-Lila is already out.

 

You would need to adjust your sales tax payable if it is incorrect. I'd suggest checking your record with the one who advised you to adjust it. Or, you can run a Sales Tax Liability report to know your tax amounts in a certain period.

 

 

You can dig deeper by double-clicking the total amount in the Tax Collected column to see the transactions. If you find out that you need to adjust your sales tax, you can go to Vendors, choose Sales Tax and Adjust Sales Tax Due. Here's an article for additional reference: Process sales tax adjustment.

 

Please go back to this thread if you have other questions.

Cricket42
Level 1

Sales Tax collected and Sales Tax payable

See Attached PDF file for directions on correcting.

 

 

Hope this helps.

LizCPA
Level 2

Sales Tax collected and Sales Tax payable

I feel like I should jump in here since there's another reason the two columns may not match. Many times, a user will change either the amount of a taxable item on an invoice OR even change the taxability of an item or the whole invoice after that period has been reported to the state and paid.  I deal with this more frequently than I would prefer and am working through a pretty big puzzle right now with that exact issue.  Hope it helps.

DebbieS
Level 1

Sales Tax collected and Sales Tax payable

Can you tell me where the sales tax audit section is? I'm having the same issue and would like to audit my sales tax payable. 

DebbieS
Level 1

Sales Tax collected and Sales Tax payable

This is true and think I have done this. I just need to know how to fix. 

Catherine_B
QuickBooks Team

Sales Tax collected and Sales Tax payable

I'll be here to help you fix the sales tax issues you're experiencing, DebbieS.

 

To take a look at your sales tac payable amounts, you can follow the steps provided by my colleague Rasa-LilaM. Ensure that the reports' date range and accounting method are correctly selected. Once you set up the report, you can drill down to the amounts in the Sales Tax Payable and Tax Collected column so you'll identify the transactions associated with it. 

 

If the amounts are still posted incorrectly, you can run a Verify and Rebuild Data Utility process to fix discrepancies on reports. Feel free to use this link to help you manage your sales taxes.

 

You can also use get in touch with our Phone Support Team if the issue persists. 

 

Keep me posted on how this works. I'll be here to help you. Take care!

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