How to Adjust Sales Tax Payable in QuickBooks
Adjusting sales tax payable in QuickBooks involves a variety of different items. These include sales tax codes, which cause transactions to be taxable or nontaxable and allow you to track the reason you did or did not charge a sales tax, and sales tax items to track sales tax amounts by county or state. One way of adjusting sales tax payable for sales items is to use a non-taxable sales code such as labor and then override a sales items default sales tax code while using the item on a sales form. These instructions are for versions 2004, 2005 and later.
Other People Are Reading
Instructions
-
-
1
Select the "Reports" drop-down menu, choose "List" and then click "Item Listing" to create an "Item Listing Report." Then clarify the "Item Listing Report" to include each "Sales Tax Item" and "Sales Tax Group." Then click "OK." If the "Pay Sales Tax" window is open, click "Adjust," choose an adjustment date and fill in the entry number field.
-
2
Delete all columns from the report except for "Item," "Description," "Type," "Price" and "Tax Agency." Next, assign an appropriate report title and memorize the report for future use. Re-examine each sales tax item on the report to make sure that it is set up properly.
-
-
3
Review the sales tax codes in sales item windows with the following steps. Choose the "Reports" menu, click "List" and select "Item Listing" to make an "Item Listing Report." Alter this report by removing every column except "Item," "Type," "Description" and "Sales Code."
-
4
Quick zoom on sales items to correct the default sales tax code. Choose "Lists" and then "Sales Tax Code List." Press "Control" and "N" to open the new sales tax code window. Enter the name of the new code, using up to three characters. Enter a description to make it easier to interpret the code.
-
5
Item types should correspond to the item's taxable status and tax code. Choose taxable if you're entering a code to track taxable sales. Select nontaxable if you're entering a code to track nontaxable sales. Click "Next" to set up another code, and click "OK" when you have finished.
-
1
Tips & Warnings
If the number is the same as the last transaction and you want the number to change with each new one, turn the automatic numbering preference on. If you use Classes, the Class drop-down list will appear so that you can assign a class to this adjustment.
If you make an adjustment by clicking "Adjust" in the "Pay Sales Tax" window, you will need to select any tax agency that you have previously checked again. If you do not, the sales tax payment check will not be recorded in QuickBooks.
