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abhibhatt23
Level 1

Sales Tax Setup and Application to Previous Transactions

Hello, I recently setup sales tax in my client's QB account. I understand that sales tax will now be calculated and recorded going forward with future transactions but how do I retroactively apply and calculate the sales tax for the previous sales before the sales tax was applied?

5 Comments
RenjolynC
QuickBooks Team

Sales Tax Setup and Application to Previous Transactions

I'm here to help you apply the sales tax, abhibhatt23.

 

You can run the Transaction List by Date report to identify the transactions with no taxes. Then, open each transaction and check the Tax box. Doing so will automatically calculate the sales tax for that transaction. 

 

Here's how:

 

  1. Go to Reports on the left panel.
  2. Type Transaction List by Date in the search field.
  3. Select the Report period, and click the Customize button.
  4. Under Rows/Columns, select the Change columns link.
  5. Put a check mark on the Tax Amount box.
  6. Click Run report.
  7. Select the transaction that has no sales tax.
  8. Under the TAX column, put a check mark on the box, then click Save and close.

Please see this sample screenshot for a visual guide:

 

 

I'm also adding these articles for more information:

 

If you have more questions about sales or other QuickBooks concerns, please let me know in the comments below. Thanks.

abhibhatt23
Level 1

Sales Tax Setup and Application to Previous Transactions

Hello! Thank you for your response. When I reach the step to click on the values in the 'Tax Amount' column, there are only blank values for each of the transaction lines (whereas in your screenshot there were $0.00 values for each of the transaction lines that you can click on to enter the tax amount). How would I proceed?

 

One thing to note is that I set up sales tax on 8/27/2020, so what I'm trying to do is go back to transactions previous to that date in QuickBooks and apply the sales tax to the transactions that were entered before 8/27/2020 so that my client can accurately calculate their sales tax amount owed when filing their sales tax return.

abhibhatt23
Level 1

Sales Tax Setup and Application to Previous Transactions

Hello! Thank you for your response. When I reach the step to click on the values in the 'Tax Amount' column, there are only blank values for each of the transaction lines (whereas in your screenshot there were $0.00 values for each of the transaction lines that you can click on to enter the tax amount). How would I proceed?

 

One thing to note is that I set up sales tax on 8/27/2020, so what I'm trying to do is go back to transactions previous to that date in QuickBooks and apply the sales tax to the transactions that were entered before 8/27/2020 so that my client can accurately calculate their sales tax amount owed when filing their sales tax return.

abhibhatt23
Level 1

Sales Tax Setup and Application to Previous Transactions

Hello! Thank you for your response. When I reach the step to click on the values in the 'Tax Amount' column, there are only blank values for each of the transaction lines (whereas in your screenshot there were $0.00 values for each of the transaction lines that you can click on to enter the tax amount). How would I proceed? Please see attached file.

 

One thing to note is that I set up sales tax on 8/27/2020, so what I'm trying to do is go back to transactions previous to that date in QuickBooks and apply the sales tax to the transactions that were entered before 8/27/2020 so that my client can accurately calculate their sales tax amount owed when filing their sales tax return.

MaryLurleenM
Moderator

Sales Tax Setup and Application to Previous Transactions

Hello there, abhibhatt23,

 

After following the steps provided by my colleague above, you will be able to manually enter the sales tax rate. You can use the sales tax rate for previous transactions. On the blank boxes, you'll have an option to enter the rate.

 

You can click on the Amount link to open the transaction. For additional details, you can't add sales tax on bank deposits. Based on the screenshot you've provided, you're trying to add sales tax on deposit transactions.

 

Furthermore, make sure your sales tax is already enabled. In the report, you can click on the transaction to open and make changes to the sales tax rate. 

 

The articles above have all the details you need for editing the sales tax rate.

 

Let me know if you have additional questions.

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