QuickBooks Online gives you two options if you need to manually enter or change the tax amount calculated in a sales transaction.
Option 1: Enter an adjustment when you make the tax payment #
Entering an adjustment helps account for rounding differences. See Record, Delete or Edit a Sales Tax Payment for more information.
Option 2: Create a sales tax item and use it on your sales transactions. #
Important! Be aware that if you use this method, you won’t be able to pay sales tax through the Sales Tax Center since it uses a special liability account that you can’t link to products and services.
- Create an Other Current Liability account
- Select the Gear icon at the top, then Chart of Accounts.
- In the Chart of Accounts, select the New button.
- From the Account Type drop-down, choose Other Current Liabilities.
- In the Name field, enter Sales Tax Payable – Manual Adjustment.
- Select Save and close.
- Create a Sales Tax item.
- Select the Gear icon at the top, then Products and Services.
- In the Products and Services page, select New.
- Select Non-Inventory or Service for Item Type.
- Enter Sales Tax in the Name and Description fields.
- Leave the Sales price/rate field blank.
- In the Income account field, choose the account you set up in Step 1.
- Make sure the Is taxable box is unchecked.
- Select Save and close.
- Add the item to your sales transactions.
- Create the invoice or sales receipt as usual.
- Add the sales tax item created in Step 2.
- Manually enter the amount for the Sales Tax line item.
- Select Save and close.
To determine the amount of sales tax owed:
- Select the Gear icon at the top, then Chart of Accounts.
- Find the Other Current liability account an in the Action column, select View register.
- The balance listed in the is the amount of sales tax currently owed.
To pay the sales tax from this other current liability account:
- Select + New.
- Select Check.
- In the Payee field, select the vendor receiving the sales tax payments.
- In the Account field, select the Sales Tax liability account you created.
- Enter the amount of your sales tax payment.
- Select Save and close.
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