How to deal with making adjustments

Sales > Managing Sales Tax > Step 4: How to deal with making adjustments

Step 4: How to deal with making adjustments

There may be several circumstances resulting in making an adjustment to your sales tax payable. Some reasons may be:

▪	You received a credit because you overpaid your previous sales tax payment.

▪	Your state or local government allows a deduction of sales tax paid to vendors or suppliers when you’re reselling products you purchased.

▪	You tax agency charged a fine, penalty, or interest due to a late payment.

▪	If there is a tax variance due to rounding issues.

To record a credit received

1	Go to the Banking command center and click Receive Money. The Receive Money window appears.

2	Choose one of the following:

▪	Deposit to Account—In the Deposit to Account field, type or select the required bank account.

▪	Group with Undeposited Funds—Choose this option if you want the deposit to be recorded in the undeposited funds account. After you have grouped all the deposit transactions you want, you can make one bank deposit for all the undeposited funds. For more information, see ‘Bank deposits’.

3	In the Payor field, type or select the payor’s name.

4	In the Amount Received field, type the amount received.

5	[Optional] In the Payment Method field, select the payment method.

6	[Optional] If you want to record additional details about the transaction, such as a check number, click Details and record the details in the Applied Payment Details window that appears.

7	Type the date of the transaction.

8	[Optional] Type a detailed comment in the Memo field to help you identify the transaction later.

9	Allocate the amount to the account you use to track your sales tax.

10	If you want to assign the transaction to a particular job, department or category, enter the appropriate information for each field.

11	Click Record.

To record a penalty or fine

To pay a penalty or fine that you don’t need to include on a sales tax return, simply write a check to the sale tax authority from an expense account that you create for this purpose.

To correct a tax variance

A tax variance can be caused by changing the amount of sales tax that was automatically calculated. If this has occurred, the Tax Amount Variance report will display the transactions changed.

1	Go to the Reports menu and select Index to Reports.

2	Click the Sales tab.

3	Scroll down to the Sales Tax section and select Tax Amount Variance report.

4	Click Customize to select the Tax Codes and the filters available for this report.

5	Click Display. The Tax Amount Variance report is displayed.

6	Hover the mouse over the transaction that is listed as a variance then click the mouse. The original transaction appears.

7	Click the zoom arrow next to the tax amount. The Tax Information window appears.

8	Click on the tax amount and change it to the amount stated in the Calculated Tax column on the report.

9	Click OK. The original transaction reappears.

10	Click OK to close the window. The report is displayed.

11	Click Close.

▪	Step 5: Cutting the check

▪	Changing or deleting a transaction

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