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sales tax

I am creating credit memos for sales tax. My question to verify my thoughts is this. When making a credit memo for sales tax how would we code it? would the item code be "sales tax" or something else? 

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QuickBooks Team

Re: sales tax

Hi bwaugh1986,

 

Let me give you a couple of scenarios and get your sales tax recorded.

 

If you need to adjust the sales tax amount you owe, you can create a sales tax adjustment. 

  1. Click Vendors.
  2. Click Sales Tax.
  3. Click Adjust Sales Tax Due.
  4. In the Sales Tax Adjustment window, enter the adjustment information.
  5. Click OK.

If you charged a sales tax for a tax-exempt customer, you have options to process a refund.

  • Option 1: Credit sales tax charged to a sales tax exempt customer.
  • Option 2: Modify original invoice.
  • Option 3. Create a credit memo.
  • Option 4: Enter a sales tax adjustment to zero out the sales tax due.

Please refer to this article for the step-by-step instructions: Refund sales tax collected from tax exempt customers.

 

Additionally, when creating a credit memo, you can use the same sales tax code to match your original invoice.

 

I've also added this handy article for future help: Review sales tax reports.

 

Get back to me anytime if you have additional questions.