In this article you will learn how to adjust the sales tax amount you owe in QuickBooks Desktop. To know more, contact us on QuickBooks Customer Care Number.
You move money into or out of your Sales Tax Liability account while making sales tax adjustments. For reasons listed below, you should adjust your sales tax liability:
- Given by your sales tax agency, a credit for previous over payment or early payment discount.
- For late or non-payment in the previous tax year, a fine charged to you by your tax agency.
- In a previous period, corrections to sales.
- Between QuickBooks and your sales tax forms, rounding differences.
- By your agency, if a sales tax holiday is declared.
- To adjust your sales tax due, follow the steps given below:
- In the Vendors menu, select Sales Tax then Adjust Sales Tax Due.
In the Sales Tax Adjustment window, follow the steps given below:
- Firstly, you need to enter the sales tax vendor, adjustment account and other relevant information.
Please Note: For the adjustment account,do NOT use sales tax payable. In case you are making the adjustment because of receiving a discount/credit or if you are entering a negative rounding error select an Income account. In case you are making the adjustment because you have add penalties and fines or if you are entering a positive rounding error then you need to choose an Expense account.
- Choose If you need to increase or reduce sales tax, in the Adjustment section and then enter the adjustment amount.
- (This step is Optional) Enter any additional note in the Memo field.
- Click on OK.
- For sales tax items, adjust amounts.
If there are several types of sales tax payable to the same tax vendor,you need to make adjustments for specific sales tax items. You can allocate the amount to match the reporting as well by adjusting the sales tax items.
Entering Positive adjustment
- You can use a Sales Receipt, to enter a positive adjustment or an increase in sales tax.
- In the Customers menu, select Enter Sales Receipts.
- You need to leave the Customer field blank.
- Click on the Tax drop-down and then select sales tax item with 0%.
- Please Note: Select Add New and create one if none exists.
- Select the first empty line in the Item column. Now, select the sales tax item that you want to adjust.
- Enter the amount of the adjustment in the Amount column and then press Tab or Enter.
- Once you receive the message “Changing the amount of a tax line item may cause your sales tax reports to be incorrect” click on OK.
- For any other sales items that needs to be adjusted,repeat steps 4 to 6 .
- Click on Save & Close.
- For a Negative adjustment
- Make use of a Credit Memo, to enter a negative adjustment or a decrease in sales tax.
- In the Customers menu, select Create Credit Memos/Refunds.
- Click on a customer name. The Credit memo requires that you enter a name, unlike the Sales receipt. Click Add New if you do not wish to use a real customer. Named Accountant Use Only, you need to create a customer.
- Select the first empty line in the Item column and then choose the sales tax item that wish to adjust.
- Enter the amount of the adjustment in the Amount column and then press Tab or Enter.
- Once you receive the message “Changing the amount of a tax line item may cause your sales tax reports to be incorrect” click on OK.
- For any other sales items to be adjusted, repeat steps 3 to 5.
- Click on the next empty line then click on a Discount item.
- Enter the total amount in the Amount column. The amount should be equal to the adjustment(s) that are entered in the previous line.
- Select Tax, in the Tax column.
- Check that the total amount is $0.00 or not.
- Now, select Save& Close.
To know more on how to adjust the sales tax amount you owe in QuickBooks Desktop, call on our QuickBooks Customer Care Number. You can also write to us at support@quickbooksupport.net . For more information, visit – www.quickbooksupport.net.