Sales Tax

Thanks for reaching out to us, @bnccarwash. I'll be happy to share the steps on how to create a sales tax adjustment in QuickBooks Online (QBO).

First, it's necessary to use the appropriate account type when adjusting sales tax. That said, we'll have to set up an expense account if you need to increase your sales tax due or an income account if you need to decrease. To do that:

1. Switch to Accountant view. Then, go to the Gear icon and select Chart of Accounts.
2. Click New.
3. From the Save account under dropdown, choose between Income or Expenses. 
4. Choose the Tax form section.
5. Enter a name for the adjustment account and click Save.
   

Then, let's add an adjustment. Here's how:

1. Go to Taxes and select Sales Tax.
2. Enter the Tax Period Date.
3. Locate the tax period to adjust, then View Tax Return.
4. Click Add an adjustment and select a Reason.
5. Add an adjustment date.
6. Select the account for adjusting sales tax from the Account dropdown.
7. Enter the adjustment amount and click Add.
   

Alternatively, you may undo the incorrectly categorized transaction from your bank feed. This way, it will return to the For Review tab so you can categorize it appropriately to the affected account.

Furthermore, the tax center contains everything you need to manage sales tax in QBO. You can generate reports for your liabilities, record or edit sales tax payments, and view them for different time periods. 

Feel free to return to this thread whenever you have additional questions about adjusting your sales tax in QBO. We're always around to help. Keep safe!