Sales Tax Liability Report

by Kathy

I have a question about the sales tax liability report being wrong.

At times, we find it necessary to purchase items from vendors and are charged sales tax. We then turn around and sell item to customer and charge him sales tax. I took the deductions on my monthly sales tax last month, but now my Sales Tax Payable and Sales Tax Collected do not match on the Tax Liability Report. I've traced the amount to that particular deduction last month.

I posted the amount as:
Debit to Sales Tax Payable (reduced my taxes)
Credit to Job Income (increased my income & sales)

The Credit increased my Income on the P&L, but did not increase my Total Sales on the Tax Liability Report, which are supposed to match (right?).

I believe I'm using the wrong account to post the Credit, but cannot figure out where it should go.

Reply:

The Sales Tax Payable column of the Sales Tax Liability report is only impacted through the use of Sales Tax items. As a general rule it is not a good idea to post sales tax transactions via the general journal because it skews the liability report, as you are finding.

I think the correction needs to happen on the vendor's bill. Try adding a sales tax item to the bill. Be careful: do not change the bill amount. You can toggle back and forth between the Expenses Tab and the Items Tab to get the amount correct.

I hope this answers your question about the sales tax liability report. Let me know by leaving a comment below. Thanks.

Click here for personal help with
Sales Tax Liability Report.




Share this page on Facebook or any other
social media site by clicking one of
the boxes below:















Easy & Inexpensive
QuickBooks Help:




image of 27 QB mistakes ebook cover

"Conquer 27 Frustrating Mistakes that Steal Your Time, Sanity & Money!"

QB Mistakes are
Costly & Unnecessary

27 QB mistakes & their solutions, demonstrated in detail.

Two FREE Bonuses Included! Only $9.97.
Instant Download.


Learn More Here

Or:

Add to Cart




image of COGS ebook cover


"Crack the COGS Code"

Too Little COGS?
Too Much Taxes!

QB does NOT use the traditional COGS formula to compute your COGS!


Only $9.97. Ebook.
Instant Download.


Learn More Here

Or:

Add to Cart















Comments for Sales Tax Liability Report

Click here to add your own comments

Sep 16, 2011
Sales tax filling
by: Anonymous

To do the sales taxes what amount should I be using the total tax collected or the Sales tax payable? and are those 2 amounts are suppose to match?

May 20, 2015
Good post NEW
by: Zella Bode

Instead of criticising write the variants., Many thanks from costumelook (halloween costumes)

May 27, 2015
Good post NEW
by: Axel Funk V

I see that you are a professional in this niche, so, may I ask you do a favor for me?
Could you help me place some ads of my halloweencostumesmax on your site?
It will be great if I could suggest some guest posts or banner ads, if it's possible - answer me here, please!
p.s. I will pay for your help good money, I really love your site. Thank you!

May 27, 2015
Good post NEW
by: Albert Romaguera PhD

Hello! Your site is great!
How much time did you spend to write so awesome articles?
I want to suggest you to advertise my site halloweencostumesmax on your blog, is it possible?
I really love your site and your audience, I will pay any money to publish a guest post, for example, on your site.
Please, answer me! Thank you!

Aug 31, 2015
True information is shared NEW
by: Elaine D. Baldwin

Numerous individuals are contending and making contrasts between online training framework and on grounds instruction. Truly I am in the support of both sorts of training on the grounds that the thought process is instruct the country. I lean toward online training because of covering remote territories of a nation. We are giving best service for writing your assignment work.

Sep 16, 2015
Great piece of work NEW
by: Anonymous

Great piece of work you are a great writer and give us much information about this topic. Your story of Sales Tax Liability Report is very informative and very interesting for us. bumper sticker custom cheap

Click here to add your own comments

Return to QuickBooks Q&A.