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  #1  
Old 03-14-2008, 12:28 PM
MaryR MaryR is offline
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Question Adjusting Sales Tax

When we switched to Quickbooks our accountant did some adjustments and when we loaded them without realizing that he had his own set of GL Accounts numbers different from ours, it created (2) GL Acct #'s for Sales Tax Payable. I have on one side a positive number and a negative in the other account. I did the Quickbook Help area, but I want to make sure that I am doing this correctly without messing it up even more than it is. When setting up a rounding account, should it be an income account. There is allready one set up under and Equity account. Or, if you have suggestions on how I should correct this problem. Thanks maryr
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Old 03-14-2008, 02:47 PM
LJBooks LJBooks is offline
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I would figure out which sales tax payable account is being used by Quickbooks on the invoices. Use the Adjust sales tax feature to move the balance from the wrong account to the correct one. Then make the wrong account inactive.

From the help file on rounding errors:
If you're adjusting for a rounding error, choose either an income account (for a negative error) or an expense account (for a positive error). Some users also set up a special account for rounding errors or they use the Miscellaneous Expense account.

Rounding errors should be small so it does not really matter if you use an income or an expense account. Hopefully it will be close to zero by year end.
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Old 04-01-2008, 09:26 AM
MaryR MaryR is offline
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Sales Tax

Thank you for your response. I have another question? Can I do this adjustment through the GL Adjustment? Or must I do this through the Sales Tax adjustment screen? What I really need to do is apply the negative balance against the positive balance and I have to admit I am confused. Please help. Thanks Mary
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Old 04-01-2008, 09:34 AM
LJBooks LJBooks is offline
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I would use the Sales tax adjustment screen. You will see the option to either "increase sales tax" or "decrease sales tax" so I think you will find some of your confusion eliminated.
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Old 04-01-2008, 09:40 AM
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lisa_mn lisa_mn is offline
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You could try merging the two accounts - not sure if QB will allow it, but it's worth a try.

Also, the rounding adjustment should not be an equity account - I usually dump the rounding into bank service charges.
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  #6  
Old 04-01-2008, 09:57 AM
LJBooks LJBooks is offline
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Great suggestion. It certainly is worth trying.

Edit the sales tax items so that they are all using the one created by the system. Then rename the other one to match the correct one. It will move your history on the extra account and eliminate the need for any adjustment.
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Old 04-01-2008, 10:32 AM
MaryR MaryR is offline
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Smile

Shall give it a try. That did cross my mind somewhat, but I was not sure if it would work, so I did not give it a try. Thank you
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Old 04-01-2008, 10:56 AM
MaryR MaryR is offline
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Sales Tax

I tried it both ways and it did not work. Anymore suggestions? I am going crazy. MaryR
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  #9  
Old 04-01-2008, 03:53 PM
LJBooks LJBooks is offline
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It might be easiest to edit the sales tax items and transactions that are using the wrong account. Just run a transaction detail report on the incorrect account and edit them.
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  #10  
Old 04-01-2008, 05:36 PM
MaryR MaryR is offline
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How exactly would I edit them? I have never had this much trouble with Sales Tax. But, we would like it correct. Thank you for you help. Mary
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  #11  
Old 04-01-2008, 05:44 PM
LJBooks LJBooks is offline
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Double click on the incorrect transactions to see what caused the wrong account. Fix the items so that they point to the right account. This will correct the incorrect transactions. If journal entries used the wrong account, then just change the account used in the JE.
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  #12  
Old 04-02-2008, 12:45 PM
MaryR MaryR is offline
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After looking at both GL accounts I was able to merge them. It seem to work for one other thing. When you print off the Sales Tax Liability Report, the tax rate is not appearing. So, now it shows that I do not have any sales tax due, which I know is not true. I checked my items list and the rate is there, what am I missing? I found that in order to merge both accounts, you have to go under Admin and turn the sales tax off. It will then let you merge the accounts. You then need to turn the sales tax button back on. I did do a back up before I did all this. Can you please help with my other problem? Thank you Mary
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  #13  
Old 04-02-2008, 03:37 PM
LJBooks LJBooks is offline
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If you run a G/L report for the sales tax account does it show a balance as of 3/31?
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  #14  
Old 04-02-2008, 03:41 PM
MaryR MaryR is offline
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Yes it does and I tracked it manually to make sure the money was correct and it is. Mary
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  #15  
Old 04-02-2008, 03:59 PM
LJBooks LJBooks is offline
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Try modifying the report to point to the final sales tax payable account and set the date to ALL to see if that helps.

What happens when you use the Pay sales tax screen? Does it see your balance?
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