Sales tax percentages vary from state to state. Manage your sales tax payments in QuickBooks by updating tax percentages to accommodate the sales tax discount, credit, penalty or rounding error in your original tax percentage. When you enter a sales tax adjustment in QuickBooks, a journal entry is created to help you track your changes. The adjustment appears in the "Pay Sales Tax window" along with any other sales tax payments that are due. Then make changes to your sales tax percentages in your vendor menu.
Open your Quickbooks software. Go to the "Vendors" menu and click "Sales Tax." Choose an "Adjustment Date." Fill in the "Entry No." field with a number for your adjustment.
Click the "Sales Tax Vendor" drop-down list and choose the tax agency to which the adjustment applies. Click the "Pay From Account" drop-down list and choose an adjustment account. Choose an income account if you are receiving a discount in your sales tax. "Choose an expense account, such as Interest Expense or Non-Deductible Penalties, if you're making the adjustment for a fine, penalty or interest due," explains Quickbooks.com.
Select whether you want to increase the sales tax or decrease it, then enter the amount. Increase your sales tax when paying a fine or penalty. Decrease your sales tax to extend a discount to a customer or if you are receiving a tax credit. Click "OK" to save your changes.
Tips & Warnings
- "If the Pay Sales Tax window is open, click Adjust. Otherwise, go to the Vendors menu, click Sales Tax, and then click Adjust Sales Tax Due," advises Quickbooks.com.
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