QuickBooks 2012: Correcting Sales Tax Payment Errors

Often clients pay their sales tax by entering a Bill and cutting the check through A/P instead of using the Pay Sales Tax window.  Here is how to correct this error.

1.   Locate the checks used to make the original payments in the register.           Note the Type = CHK

2.   Note on a piece of paper the dates, check numbers, amounts, and reconciled status of the erroneously created checks.

3.   Delete the checks.

4.   Pay the taxes using the Pay Sales Tax window.  Use the dates, numbers, and amounts of the original checks.

5.   If the original checks were marked as cleared in QuickBooks, place a checkmark in the Cleared column of the  register.  This temporarily marks the transaction as cleared.   Note Type is now TAXPYMT, which is correct.

6.   Complete a “mini reconciliation” in the Begin Reconciliation window, enter the statement date and statement balance from the last reconciled bank statement.  With only the new sales tax payment checks marked as cleared, the ending balance should agree with the bank statement ending balance.

7.   Reconcile the account.

8.   Once all of the checks have been replaced, run the financial statements to see the impact of the changes.

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