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Ai2
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Voiding Invoices - Sales Tax

I was wondering how voiding an invoice will affect my total sales tax liability?

We have some duplicate invoices that we need to void but I already made sales tax payments for April-May. If voiding will affect the sales tax, what is the best way to zero out an invoice?

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Best answer 10-15-2018

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Established Community Backer ***

If sales taxes are reported on Accrual Basis, you don't V...

If sales taxes are reported on Accrual Basis, you don't Void; you offset using a credit memo for the same item that is on the erroneous invoice, and the Credit Memo is dated now.

If you are on Cash Basis, an unpaid invoice should have never been seen on the sales reports, yet. That means Voiding them should be fine.

You always have to consider the effect for Cash Vs Accrual, and for what is On the invoices, such as making a mess of inventory.

4 Comments
Established Community Backer ***

If sales taxes are reported on Accrual Basis, you don't V...

If sales taxes are reported on Accrual Basis, you don't Void; you offset using a credit memo for the same item that is on the erroneous invoice, and the Credit Memo is dated now.

If you are on Cash Basis, an unpaid invoice should have never been seen on the sales reports, yet. That means Voiding them should be fine.

You always have to consider the effect for Cash Vs Accrual, and for what is On the invoices, such as making a mess of inventory.

Ai2
Not applicable

Thank you. Should we report sales taxes on accrual or cas...

Thank you. Should we report sales taxes on accrual or cash basis? Our ITR is on cash basis but sales taxes are reported on accrual basis. It has been like this since I started working here. I was told by the external Accountant to continue the practice. Need your inputs on this.
Established Community Backer ***

"Should we report sales taxes on accrual or cash basis?"...

"Should we report sales taxes on accrual or cash basis?"

You need to Ask your taxing agency; they control what you need to do.

"Our ITR is on cash basis but sales taxes are reported on accrual basis. It has been like this since I started working here. I was told by the external Accountant to continue the practice. Need your inputs on this."

Ask your Tax agency. No one on the internet knows what you do or where you are or what that means.


QuickBooks Team

Hi, Ai! Voiding the duplicate invoice won't change the ac...

HiAi!

Voiding the duplicate invoice won't change the actual sales tax payment. It creates an over payment of your sales tax liability. However, before deleting an invoice, it would be best to consult your accountant to determine the correct way of recording it.

Drop a comment down below if you have any more questions about sales tax payments; I'm here to help. Thanks!