This article will provide you the procedure about how to resolve common sales tax issues. You will be able to troubleshoot the sales tax issues or unexpected results that you face when you try to manage your sales tax in QuickBooks Desktop.
We’ve listed some of most common issues that can occur in your QuickBooks software while managing your sales tax. You are advised to read this article properly and implement the solution steps accordingly. You can also get in touch with the customer support department of getsupportnumber.com by dialing the toll-free QuickBooks Customer Service Phone Number +1800-567-0425.
Invoice Prints “T” Even Though The Sales Tax Feature Is Turned Off
Details: Invoice prints “T” is next to taxable amount in spite of the fact that the sale tax feature is disabled.
Reason behind the error: Invoice template is damaged
Quick Tip: Create a new invoice temple again
Recommended solution: There are multiple resolutions for this issue but the initial one should be the creating a new template. This solution resolves the issue most of the time. However, if the issue is still around then you can move on to the further solutions.
Solution 1: Create A New Template
- Open QuickBooks and from the main menu , go to Lists > Templates
- Click on the Templates drop-down from the bottom of the window and then select New.
- Select the template type.
- Click on
- Provide a template name and save your customization.
Solution 2: Duplicate The Template
- Go to List > Templates.
- Highlight the template that you are currently using.
- Click on the Templates drop-down and then select Duplicate
- Go to the Select Template Type window Select Invoice and then click on
- Run an invoice and use the duplicate template.
Solution 3: Default To The Copy Of The Template
- Go to Lists > Templates.
- Double click on the Invoice template.
- Click on Additional Customization from the Basic Customization
- Click on Default and then OK
Sales Tax Payable Is Incorrect After Using The Write Checks Window To Pay Sales Tax
Quick Tip: You should use the Pay Sales Tax window and no the Write Checks while recording a payment for sales tax.
Recommended solution: If you are an QuickBooks Accountant or Enterprise Accountant user then you need to use Client Data Review. If you are using a different version then you need to follow the below mentioned step:
- Create a Backup of the QuickBooks company file
- Locate the wrong sales tax payment. You can find ir in the Bank Register
- Reenter the sales tax payments. To do so, follow the below steps:
- Go to Vendors > Sales Tax > Pay Sales Tax
- If you have multiple checking accounts then you need to select the one that you want to use for the tax payments under the Pay From Account
- Check the amount entered in the Ending Bank Balance to get assured that you have enough amounts in the checking account and you can make the payments for the sales tax.
- Enter the date of the sales tax payment in the Check Date
- In the Show sales tax due through field, modify the end date of the payment period in question.
- Provide the check number that you used in the original payment under the Starting Check No. field
- Check to select the items you want to pay in the Pay section
- You can also select the Paid column and make changes in an amount of any item.
- Validate if the amounts are matching with the original payment or not. Once verified, click on OK
- There are possibilities that an message may appear on your screen that says, “Problem: Another Check already has number [xxx]…”, select Keep Number. This will secure the original check number if you delete the original sales tax payments in the future (It will get replaced with the one you’re entering now).
- Repeat all the steps of this section if you want to enter more payments before proceeding.
- Delete the original payment transactions from other fields in QuickBooks Desktop.
- Head to Vendors > Sales Tax > Pay Sales Tax
- Select the bank account twice that you used while re-entering the payment.
- Go to the date of the sales tax payment to change.
Note: Because the date on both the original and the re-entered payment is the same so you have to check the entries near each other.
- TAXPMT will be the type of the re-entered payment. If the actual payment was already cleared your bank account then mark the TAXPMT entry box and then click on Record.
- If you wrote the sale tax payments to more than one tax agency but they were not properly written then you have to edit the numbers of the recreated checks in the register to match the actual check numbers. You need to click on the Number field and then enter the correct check number before selecting
- Go to the Edit menu and select the actual sales tax payment and then click on Delete Check.
Note: If a bill was entered a bill and a bill payment check (BILLPMT type) was created then you need to remove the bill to keep it from appearing in the Unpaid Bills Detail report.
- Validate if the issue is solved.
- Open a Sales Tax liability report via the current date and do a comparison of it against the balance of your Sales Tax Payable account.
- Verify the vendor balances for every tax agency by running the Vendor Balance Detail report.
- Open the Transaction List by Vendor report to make sure that it don’t have any duplicate payments.
Warning: You Must Specify A Vendor Name For The Sales Tax Account
Quick Tip: Enter a vendor name under the Customer: Job column while creating a journal entry or writing a check that uses sales tax payable account.
Negative Sales Tax Payable On The Cash Basis Balance Sheet Report
Details: The cash basis Balance Sheet displays a negative amount for sales tax payable referring that the state/province owes you money.
Possible reason: You can pay the sales tax in at the end of the month when you create the invoice. You may see a negative balance for the Sales Tax Payable account in the Balance Sheet report when you submit it on accrual basis and open it on cash basis. You may see a negative balance for the Sales Tax Payable account in the Balance Sheet report if you pay on accrual basis and run the report on cash basis.
Quick Tip: Make sure that the QuickBooks is set to the proper basis. You may have to contact your accountant and the Department of Revenue to get assured that you’ve paid your sales tax properly.
To set Sales tax basis in QuickBooks, you need to follow the below mentioned steps:
- Login to your company file with administrator rights
- Switch to the single user mode by going into File > Switch to Single-user Mode.
- From the main menu, go to Edit > Preferences.
- Click on Sales Tax from the preferences window and then go to Company Preferences
- In the When do you owe sales tax? section, select the correct basis that suits your company.
- Click on OK.
Inactive Sales Tax Items Affect A Sales Tax Group
Quick Tip: If a Sales Tax Item is Inactive, it doesn’t mean that it is removed from the assigned Sales Tax Group. You must remove the inactive sales tax items from the Sales Tax Group to apply the active sales tax items properly.
- Go to Reports > Lists > Templates.
- Double-tap on the Sales Tax Group in question.
- Highlight the sales tax item(s) that you want to delete and then press CTRL + Del.
- Click on OK.
Note: If some of the invoices are already created using the Sales Tax Group with the last Sales Tax Item. It won’t affect the way these invoices were calculated.
Error When Trying To Create A Credit Memo
Details: When you make a Credit Memo through an invoice or the Customers menu and you get a warning stating “Error.”
Possible reason: The invoice contains a sales tax item and Sales tax setting has been disabled in the company file.
Quick Tip: Enable the Sales Tax in order to create the Credit Memo properly. Create the Credit Memo and then turn the sales tax off again.
- Turn Sales Tax on in the company file. To do so, follow the below mentioned steps:
- Open QuickBooks and go to Edit > Preferences.
- Select Sales Tax and then navigate to the Company Preferences
- Click on Yes to the confirmation message that says ‘Do you charge sales tax?’
- Make the Credit Memo.
- Disable the sales tax in the company file by performing the 1st step and clicking on No for “Do you charge sales tax?”
Warning: This Item Is Used In A Customer Data. It cannot Be Deleted
Details: You make an attempt to delete a sales tax item and you are returned with an error that says “Warning, this item is used in a customer data. It cannot be deleted.”
Possible reason: The sales tax item(s) you are trying to delete are assigned to a minimum one customer on the Additional Info tab of the Edit Customer screen.
Quick Tip: You can delete the sales tax item if it has not been used on any transaction and it is not assigned to any customer.
To remove the sales tax item from your customers using the Customer Contact List report:
- Go to Reports > List > Customer Contact List
- Click on Customize Report.
- Click on Tax Item from the list of available columns.
- Click on the Sort By drop-down and then select Tax Item to sort the report and locate the customer(s) easily associated with the item.
- Click on OK
- Under the Tax Item column, double-tap on any customer with the correct sales tax item.
- Go to the Edit Customer window and from there go to the Sales Tax Settings
- Remove the tax item from the Tax Item These are the items that you want to delete.
- Repeat the above two steps again for all customers connected with the sales tax item.
- You will be able to delete the item once it is no longer associated with any customer.
- From the List menu choose Item List.
- Right-click select the sales tax item, then select Delete.
Sales Tax Line Item Does Not Appear When Printing Invoices
Quick Tip: To print the Sales Tax as an individual line item on an Invoice, you must add a description in the field of the Sales Tax item.
To add description to the sales tax item:
- Go to Lists > Item List.
- Double tap on the Sales Tax item which not visible on the printed invoices.
- Under the Description field, enter Sales Tax or the Sales Tax Item description the way you want it to display on the Invoice after the print.
- Click on
Message: Your Existing Credit With [Vendor Name] Is Sufficient To Pay Your Sales Tax Due
Details: You get an error message that says “Your existing credit with [vendor name] is sufficient to pay your sales tax. A check will not be written for this vendor” when you try to pay sales tax in the Pay Sales Tax window and selecting a sales tax item and a discount entered in the Sales Tax payable register.
Possible reason: A sales tax discount does not have the same and the Sales Tax Item is not the same for a vendor.
- Go to the List menu and select Chart of Accounts.
- Double-tap on the select Sales Tax Payable account to open the register of the account.
- Locate the sales tax payment that you entered recently and then select the payment.
- Go to Edit > Delete Sales Tax Payment > OK.
- Let the Sales Tax Payable register opened.
- Navigate to Vendors > Sales Tax > Pay Sales Tax.
- Make sure that the discount doesn’t have same vendor name as the sales tax item.
- Click on OK in order to close the Pay Sales Tax
- Return to the Sales Tax Payable register.
- Locate the discount and change the vendor name to equalize the vendor name associated with the sales tax item.
- Click on Record to save changes.
- Go to the Vendors menu and select the Sales Tax option
- Click on Pay Sales Tax.
- Mark the Pay column in front of the the appropriate items to choose both the sales tax item and the discount item.
- Click on OK in order to close the Pay Sales Tax window.
Get Instant Support For QuickBooks Software
The provided methods will allow you to resolve all the common sales tax issues that you face in your QuickBooks Desktop while managing them. However, you may face some other technical issues as well while managing the sales tax in QuickBooks Software. In such scenarios, you can reach to the technical support department of getsupportnumber.com by dialing the toll-free QuickBooks Support Phone Number +1800-567-0425 and avail the technical support for all your QuickBooks issues.