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.

Looking For More?

Comments

Silicon Valley Accounting Solutions produces the Solution of the Week in order to share tips and shortcuts that promote process efficiency and highlight software features that may not be in your current toolbox. Please let us know if you have questions on how to accomplish a particular task or if you simply have a comment to share.

Even if you find that you know most of what you see here, it only takes one “Aha” to make regular visits worthwhile. To avoid missing any solutions, you may subscribe and have a new one delivered to your inbox each week.

Contact Us

We want to help you grow
your business, call us
at: (408) 260-5250 or
find out more here.

Controllership

When you need:
  • Clear processes for cash controls
  • Analysis of results
  • Customized reporting

Accounting

When you need:
  • Timely and accurate bookkeeping
  • Reconciliations and monthly closes
  • Familiarity with popular accounting software
Web Analytics