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Sales Tax collected and Sales Tax payable

Sales Tax collected and tax payable are 2 different amounts. They should be the same, I had a previous problem with this  and it seems I was to do an audit but can not remember how to go about it.

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Best answer 12-10-2018

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Sales Tax Payable is affected by your prior payments, if...

Sales Tax Payable is affected by your prior payments, if the amount was higher or lower than the amount owed at that point in time. That is just a Running Balance, in other words.

Example:

You owe $1,000 for Jan and pay it. Then, you issue a Credit Memo or otherwise Change something in Jan. Now Feb is going to reflect that difference that happened because of changes in Jan.

Perhaps the "audit" you are asking about is the Audit Trail report. Run it on Sales transactions, dated in the prior month, for changes Entered/Modified after the end of that month. This reveals where someone made changes to your historic data = making a mess of the prior sales data, affecting Sales and Sales Taxes.

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Established Community Backer ***

Sales Tax Payable is affected by your prior payments, if...

Sales Tax Payable is affected by your prior payments, if the amount was higher or lower than the amount owed at that point in time. That is just a Running Balance, in other words.

Example:

You owe $1,000 for Jan and pay it. Then, you issue a Credit Memo or otherwise Change something in Jan. Now Feb is going to reflect that difference that happened because of changes in Jan.

Perhaps the "audit" you are asking about is the Audit Trail report. Run it on Sales transactions, dated in the prior month, for changes Entered/Modified after the end of that month. This reveals where someone made changes to your historic data = making a mess of the prior sales data, affecting Sales and Sales Taxes.

Established Community Backer ***

Current balance in "collected" would be all taken in. Lia...

Current balance in "collected" would be all taken in. Liability payable is for filing period. Should be only one account. It might not hit zero. Do not use Write Check to pay this but use Vendors>SalesTax>Pay Sales Tax.

Also, there may be a difference in tax reported between Accrual and Cash basis if you have open Invoices.

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