Fix Sales Tax Issues in QuickBooks Desktop

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QuickBooks is the highly recommended accounting solution that helps streamline the company’s complicated financial tasks. However, sometimes, users might end up with sales tax issues in QuickBooks Desktop while handling sales tax. This issue might arise when the sales tax payable isn’t properly set in the Write checks. In other cases, it may also appear when the invoice prints “T,” even when the sales tax feature is turned off. If you are also stuck with this issue, fix it quickly using the resolution methods explained further in this post. 

Are you facing issues while dealing with the sales tax issues in QuickBooks Desktop? If yes, call us at 1-855-603-0490 and consult with the highly-certified experts to get a quick resolution. 

Expert’s Recommended Solutions to Fix Sales Tax Issues in QuickBooks Desktop

in this blog’s section, we have described all the possible solutions that will help you deal with the sales tax issues in QuickBooks Desktop.

1st Issue:  Amount of Sales Tax Payable is Inappropriate in the Write Checks Window

Before you go further with the resolution, ensure that you are accessing the Pay Sales Tax window. Herein, you must also remember that you are not using write checks while recording a sales tax payment.

1st Stage:- Backup Your Data File 

The users must ensure that they have generated a backup of their company file to safeguard the sensitive data before it gets into the wrong hands. 

2nd Stage:- Look For Incorrect Sales Tax Payment 

Thereon, you must search for the wrong sales tax payment entered by visiting the Bank Register used to make payments. You are supposed to record sales tax payments in QuickBooks Desktop accurately using the process explained below.

  • Start the process by navigating to the Vendors menu > Sales Tax > Pay Sales Tax. 
  • However, if you are working on multiple accounts, pick the one you need to utilize to make payments in Pay From Account. 
  • In the next step, you must review the Ending Bank Balance from the middle of the screen. Doing so will help you confirm that you have sufficient money to make the sales tax payments in your checking account. If that account is running short of money, opt for another account with sufficient money. 
  • Thereon, mention the date of sales tax payment and begin with the oldest payment first. 
  • Now, you must look beneath the Show sales tax due column to edit the end date of payment. 
  • Later, you need to insert the accurate check number, select the items you wish to pay, and proceed. 
  • Afterwards, you must check that the total amount tallies irrespective of the original payment amount and tap the OK button. 
  • Consequently, you will receive the message on the screen that represents “Problem, Another Check already has a number [xxx]…’’. Then, you must select the Keep Number option, and it will keep the original check number the next time you delete the original sales tax payments. 
  • However, if there are multiple payments for which you wish to pay, you must resume the same process from step b till g. 

3rd Stage:- Delete the Original Payment Transaction in QuickBooks 

  • The first and foremost step is to navigate to the Lists menu, followed by the Charts of Accounts. 
  • You must double-tap on the bank account name that you utilize while adding the payment again. 
  • After this, scroll down to the date of the sales tax payment that you wish to change and proceed. 
  • The users must confirm that the payment they added again must be of the TAXPMT type. For instance, if your original payment was previously cleared, mark the checkbox beside the TAXPMT entry and hit the Record option. 
  • In case the sales tax payments are written to multiple tax agencies and are not written in the correct sequence, you need to change the number of the recreated checks in register. Doing so will help you compare the actual check numbers. However, you can do the same by hitting the Number field and adding the correct check number. 
  • Thereon, you must pick the original tax payment (CHK/CHK Type) from the Edit menu and choose the Delete Check option. 

Cross-check that the issue Is Resolved 

  • The first and foremost step is to run a Sales Tax liability report through the current date. Then, you must tally it with your Sales Tax Payable account balance. 
  • You are supposed to verify the vendor balances for every tax agency by running the Vendor Balance Detail report. 
  • Also, you must run the Transaction List through the Vendor report to confirm no duplicate payments. 

2nd Issue: Invoice prints “T” even though the sales tax feature is turned off

Sometimes, users might encounter the invoice printing the letter “T” even though they have turn off sales tax in QuickBooks. This problem mainly arises due to damage in the invoice template. So, to resolve this issue, you must go through the resolution methods discussed below. 

1st Resolution Way: Duplication of the Template

  • To initiate the process, navigate to the Lists menu and then hit the Templates menu. 
  • Afterwards, go to the Templates window and pick to highlight the template you want to use for the invoice. 
  • Thereon, hit the Templates drop-down menu list from the bottom of the screen to select the highlighted Duplicate option.
  • Proceed further by tapping the Invoice and the OK button from the Select Template Type window. 
  • Finally, launch the invoice and utilize the duplicate template. 

2nd Resolution Way: Generate a Brand New Template 

  • Start the process by navigating to the Lists menu, followed by Templates. 
  • After this, go to the Templates window and pick the templates from the drop-down menu list. Then, hit the New button to move further. 
  • You are supposed to opt for the correct template type and click the OK button.
  • Finally, allot a template name and then save your customization. 

3rd Resolution Way: Set the Copy of the Template As Default 

  • In the beginning, you must go to the Lists menu and then the Templates option.
  • Soon after this, double-tap on the Invoice Template from the Templates window.
  • You are supposed to pick the Additional Customization option from the Basic Customization window.
  • Thereon, hit the Default option and OK from the dialogue box on the screen. 
  • End the procedure by clicking the OK button to set the default copy of the template successfully. 

3rd Issue:- The users must mention the vendor’s name for the Sales Tax Account

The users must include a valid name into the Customer: Job column while preparing a journal entry. Otherwise, you can also write a check that you can utilize for the sales tax payable account. 

Negative Sales Tax Payable Shown on the Cash Basis Balance Sheet Report

For instance, if you pay the sales tax amount at the month’s end, you can pay the same when you generate the invoice. Otherwise, you can also pay in the month when you are paid for the invoice. Soon after this, there is a chance that you will see the negative balance for the sales tax payable account in the balance sheet report when you pay on an accrual basis. 

Stepwise instructions for setting up the sales tax basis in QuickBooks 

  • You must sign into your data file using the proper administrator credentials to start the process. 
  • Afterwards, move to single-user mode and browse to the File menu > Switch to Single-User Mode. 
  • Thereon, browse to the Edit menu to pick the Preferences option. 
  • Now, from the Preferences window, click Sales Tax in the sidebar to select the highlighted Company Preferences tab. 
  • You are supposed to browse to the When do you owe sales tax? Section and pick the accurate basis for your company.
  • End the entire process by clicking the OK button. 
Concluding the Post!!

We hope you have gathered all the relevant facts regarding how to real with the sales tax issues in QuickBooks Desktop. However, if you have any further questions regarding this issue, you can have a one-to-one conversation with our professionals for a quick response. They will assure you to provide you with the best possible assistance within the shortest possible time. 

Frequently Asked Questions (FAQ's)

Ans. To find the sales tax report in QuickBooks Desktop, go to the Reports tab, and from the Reports Center, choose Standard Reports. After this, hit the Sales tax option to utilize the sales tax report. Later, you can modify the report parameters by picking the date range along with other important filters. 

Ans. The following are the reports that are included in QuickBooks Desktop.

  • Company snapshot:- It will give you a clear image regarding your business performance. 
  • Financial Reports:- You can run the balance sheet and P& L reports to keep track of your business.
  • Inventory reports:- The users can easily generate and run the inventory reports. 
  • Customize reports:- Using these reports, you can easily generate and manage them.

Ans. You must follow the steps to customize the sales tax report in QuickBooks Desktop.

1. Initiate the process by clicking on the Reports menu > Custom Reports > Transaction Detail.
2. After this, choose to include an item, item description, and Qty columns from the Details tab. 
3. Thereon, move to the Filters tab, include the appropriate filters, and hit the OK button. 

Ans. Users must double-check the sales tax codes allotted to the products or services. Moreover, you must confirm that they are appropriately set up in your file and that your customer tax settings are up-to-date. 

Ans. If you can’t fix the sales tax issues in QuickBooks Desktop after applying the above steps, contact our professionals for quick assistance. 

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