I run a seasonal landscaping business. We collect downpayments at the beginning of the season and apply them to work as we do it. Most of my clients "hit" their downpayment amount in the month of June.
I record the downpayments on sale invoices, item DOWNPAYMENT, listed as OTHER CHARGE. The item ties to the liability account. When the client's bill is bigger than the initial downpayment, I subtract the amount of the downpayment, leaving the amount due.
My sales tax report this month is picking up all those negative downpayments as non-tax sales (but as revenue, not a liability), meaning that my non-tax sales are negative and making the Taxable Sales amount larger than the Total Sales Amount.. That doesn't make sense and is sure to raise a red flag in the State Sales Tax Audit Department! I looked back at June 2019 and this didn't happen. I switched to QB Desktop Mac 2020 over the winter. Is this a new feature?
Should I be handling the downpayments differently? I've been using QB Mac for 20 years and have never had this issue. I inherited the system, but it's never been this odd.