How to Resolve Common Sales Tax issues in QuickBooks Desktop Enterprise?

Tax issues are common issues for QuickBooks users and must be dealt with on time to prevent hampering business productivity.

In today’s article, learn how to fix problems or unwanted results you may experience when handling sales tax in QuickBooks Desktop.

Listed below are some of the sales tax issues experienced by QuickBooks users.

Fix Invoice Prints “T” even When the Sales Tax option is Switched off Error

Invoice in QuickBooks Print “T” beside Taxable Amount even when the sales tax option is switched off. The primary reason can be a damaged invoice template (Edit Invoice Template). Intuit suggests more than one troubleshooting method for such a problem. The first troubleshooting method may fix your issue or you require to try all the solutions to fix the problem. To get optimum results, execute the solutions in the order displayed below:

Method 1: Prepare a New Template

Step 1: From the menu, Choose Lists and then choose Templates.

Step 2: In the Templates screen, Choose the Templates drop-down seen at the bottom. Now select New.

Step 3: Select the template type. Now choose OK.

Step 4: Allocate a template name and then save the customization.

Method 2: Replicate the Particular Template

Step 1: From the menu section, Select Lists. Now choose Templates.

Step 2: In the Templates screen, Choose to highlight the particular template you utilize for the given invoice.

Step 3: Choose the Templates drop-down seen below. Now select Duplicate.

Step 4: In the screen for Select Template Type, select Invoice. Now choose OK.

Step 5: Open a particular invoice and then use the duplicate template.

Method 3: Default to the Template Copy

Step 1: From the menu for Lists, Choose Templates.

Step 2: In the Templates screen, Choose the Invoice Template.

Step 3: In the screen for Basic Customization, Choose Additional Customization.

Step 4: Select Default. Then click OK on the particular dialogue box that gets displayed.

Step 5: Choose OK.

Fix the Sales Tax Payable is incorrect after using the Write Checks Window to Pay Sales Tax Error

Before proceeding to fix this issue, ensure that you use the Pay Sales Tax screen. Make sure you do not utilize the Write Checks option while recording a particular payment for Sales Tax.

In order to fix this issue while using QuickBooks Enterprise or QuickBooks Accountant, utilize Client Data Review. If you use any other QuickBooks edition, use the steps provided below:

Step 1: Back up the QuickBooks Company File

Step 2: Locate the wrong sales tax payments by navigating to the Bank Register that is utilized to do the payments

Step 3: Enter the Sales Tax Payments again

• From the given Vendors menu, choose Sales Tax. Now select Pay Sales Tax.
• In case you have one or more than one checking account, Select the one you wish to utilize for such tax payments in the particular Pay from Account.
• Review the Ending Bank Balance below the screen to ensure you have adequate money in the particular checking account to do the sales tax payments. In case not, Select a new checking account
• In the field for Check Date, Add the date of the particular sales tax payment. Begin with the payment that is the oldest one
• Under the option, Show Sales Tax Due Through, Edit the date when the payment period date ends
• In the column for Pay, Review to choose the items you wish to pay
• In case you wish to edit the amount of any of the items, choose the amount provided in the column for Amount Paid. Now perform the change
• Confirm whether the original amount and total amount matches or not. Now choose OK
• You may witness a message, Problem: Another Check already has a number [xxx]. Choose Keep Number. It will save the actual original check number when deleting the actual sales tax payments later on.
• In case you have additional payments to add, repeat the 2nd step to the 9th step for every payment before beginning

Step 4: Delete the Actual Payment Transactions from different Areas in your QuickBooks Account

• From the provided Lists menu, Choose Chart of Accounts.
• Now click the bank account that you used twice when you add the payment twice
• Go down the sales tax payment date to change. It is important to note that because the date on both the re-entered and original payment is the same, you must review the entries closely to each other.
• The payment that is entered again will be a TAXPMT. In case the actual payment is already cleared by the bank, Ensure that a checkmark is added to the TAXPMT entry. Now choose Record.
• In case your sales tax payment are not written in sequential order and are written to one or more tax agencies, It is necessary that you edit the Number of the particular checks that are recreated in the register so that they match the original check numbers before you select Record.
• Choose the actual sales tax payment and then in the Edit menu section, Choose Delete Check. In case you added a big and then made a bill payment check, It is necessary that you remove the bill to ensure that it does not appear in the Unpaid Bills Detail report.
• Now repeat steps 3 to 6 for every sales tax payment you added again

Step 5: Confirm that the Problem is Resolved

• Run the Report for Sales Tax Liability via the present date. Now compare it with the Sales tax Payable account balance.
• View the vendor balances for every tax agency by running the report for Vendor Balance Detail.
• Now run the Vendor Report Transaction list to make sure that there are zero duplicate payments.

Fix Warning: You must Specify a Vendor Name for the Sales Tax Account Error

To fix this issue, you need to add a vendor name in the column for Customer: Job while writing a check that is utilized for sales tax payable account or preparing a journal entry.

Fix Negative Sales Tax Payable on the Cash Basis Balance Sheet Report error

The cash basis Balance Sheet displays a negative amount for your particular a sales tax payable, showing that the province or state needs to pay you money.

When you pay sales tax at month end, you can clear the amount in the month when you prepare the invoice or the month when you get money for the invoice. It is quite likely that you will witness a negative balance for the particular Sales Tax Payable account in the given Balance Sheet report in case you pay on the accrual basis and then on a cash basis you run the report.

Here is How You Set the Sales Tax Basis in QuickBooks:

Step 1: Login as an administrator to your particular Company data.

Step 2: Now shift to single-user mode (File > Switch to Single-user Mode).

Step 3: From the provided Edit menu, Choose Preferences.

Step 4: In the particular Preferences screen, Choose Sales Tax provided in the side-bar. Now select the Company Preferences tab.

Step 5: In the section when do you owe sales tax? Choose the right basis for your enterprise.

Step 6: Press OK.

Fix Inactive Sales Tax Items affect a Sales Tax Group Error

When a specific Sales Tax item is fixed to be Inactive, it is not deleted from the allocated Sales Tax Group. The sales tax items that are inactive should be deleted from the Sales Tax Group in order to let the active Sales Tax items be applied in the right manner.

Step 1: From the given Lists menu, Choose Item List.

Step 2: Press on the concerned Sales Tax Group tab twice.

Step 3: Highlight the specific sales tax item or items you wish to delete. Now choose CTRL + Delete.

Step 4: Press OK.

Fix an Error When trying to Create a Credit Memo

When you prepare a credit memo from any particular invoice or sometimes from the Customers menu, you get a warning notification that says, Error. The possible reason for this error can be that the invoice may comprise a sales tax item. Not to mention, the error can also arise because the Sales tax settings is turned off in the particular company file.

In order to Prepare the Credit Memo, it is important that you switch on the Sales Tax option. After that, prepare the credit memo and then the Sales Tax should be turned off. Here is how you do it:

Step 1: Turn on Sales Tax in the provided company file. For that, go to the Edit menu and choose Preferences.

Step 2: On the left-side of the pane, select Sales Tax. Now navigate to the tab for Company Preferences.

Step 3: Select the Yes radio button that says, Do you charge sales tax?

Step 4: Now prepare the Credit Memo.

Step 5: Now turn off the Sales Tax in the given company file by doing as per the directions in step 1 Now choose No for Do you charge sales tax option.

Fix Warning: This item is used in Customer Data. It cannot be Deleted Error

You are removing a sales tax item and then an error message appears, Warning, this item is utilized in Customer Data. Hence, it cannot be deleted.

The most possible cause is that the sales tax item you wish to delete is allocated to a minimum one customer on the Additional Info tab of the particular Edit Customer screen.

In case the sales tax item is not used on any transaction and is not allocated to any clients, you can easily delete the item.

In order to delete the sales tax item from your specific list of customers with the help of the Customer Contact List report, perform the steps below:

Step 1: From the provided menu for Reports, choose List. Now click Customer Contact List.

Step 2: Choose Customize Report.

Step 3: From the provided list of available columns, Choose the Tax Item.

Step 4: Choose the Sort By drop-down and now choose Tax Item in order to classify the report and then locate the customer connected with the item easily.

Step 5: Press OK.

Step 6: Press twice and choose any customer with the right sales tax item in the provided Tax Item column.

Step 7: In the screen for Edit Customer, Navigate to the Sales Tax Setting tab.

Step 8: From the Tax Item field, Delete the tax item you want to select or remove another sales tax item.

Step 9: For all the customers connected with the sales tax item, perform step 7 and step 8.

Step 10: After the item is not linked with any customers, you can remove or delete it. From the provided List menu, select the particular Item List. Now press right-click and choose the Sales Tax item. Now choose Delete.

Fix the Sales Tax Line Item does not Appear When Printing Invoices Error

In order for the Sales Tax to be printed as an individual line item on any invoice, there should be a description provided in the given description field of the given Sales Tax item in the displayed Item List.

In order to add a description to the sales tax item, perform the steps provided below:

Step 1: From the Lists option, choose menu. Now choose Item List.

Step 2: Now press twice on the particular Sales Tax item that does not get displayed on the invoices that are printed.

Step 3: In the provided Description field, Enter Sales Tax. You can also add the description for the particular Sales Tax item as you wish it to appear on the Invoice post printing.

Step 4: Press OK.

Fix Your Existing Credit with [Vendor Name] is Sufficient to Pay Your Sales Tax due Error

Paying Sales tax in the provided Pay Sales Tax screen and choosing a sales tax item along with a discount that was added in the Sales Tax payable register will lead to the following message:

“Your existing credit with [vendor name] is sufficient to pay your sales tax. A check will not be written for this vendor.” The possible cause for the occurrence of this error can be:

• While implementing the discount to the particular amount due in the Sales Tax screen, a check is not printed, however, the payment in the Sales Tax payable register is recorded for the complete amount and the discount is not applicable.
• A sales tax discount lacks the same vendor name as the Sales Tax item.

Here are the Steps for the Solution to this Error:

Step 1: From the provided Lists menu, Select the Chart of Accounts.

Step 2: Press on the Select Sales Tax Payable Account twice in order to open the register.

Step 3: Locate the sales tax payment that was added and choose the payment.

Step 4: From the provided Edit menu, choose Delete Sales Tax Payment. Now select OK.

Step 5: Leave the particular Sales Tax Payable register open.

Step 6: From the given Vendors menu, select Sales Tax and then choose Pay Sales Tax.

Step 7: Confirm that the discount does not include the same vendor name as the sales tax item. Take note of the vendor name on the provided sales tax item.

Step 8: Choose OK in order to close the screen for Pay Sales Tax.

Step 9: Now navigate to the Sales Tax Payable register.

Step 10: Locate the discount and edit the vendor name to match with the particular vendor name linked with the sales tax item.

Step 11: Choose Record in order to save the changes.

Step 12: From the provided Vendors menu, Select Sales Tax. Now choose Pay Sales Tax.

Step 13: Add a check in the Pay Column beside the correct items to choose both the discount item and the sales tax item.

Step 14: Press OK in order to close the screen for Pay Sales Tax.

We hope that this article was informative enough for you to learn how to fix common sales tax issues in QuickBooks. We have highlighted almost all the concerning problems and their solutions. Just ensure that you comprehend properly what is the issue and how it impacts your business.

If you need any kind of professional assistance or help to fixing Common Sales tax issues in QuickBooks, you can get in touch with our Dancing Numbers team via LIVE CHAT.

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