If you looked at the posting preview when you post your register closeout to QuickBooks – you might be confused that that any sales taxes you collected do not appear in the activity being posted. That’s because the QuickBooks API does not allow you to post taxes collected to any sales tax account. To work around this limitation, when we post your closeout to QuickBooks we create a Sales Receipt for the taxable sales and this adds the tax liability to your sales tax account in QuickBooks. Then, to post everything else – we create the general Journal entry. In order to prevent double posting your sales and payments – we reverse the sales and payments that were added when we created the sales receipt. But we don’t reverse the taxes because – well that was the whole point of the sales receipt – to get the sales tax posted.

Let’s Look at an example ..

You had $46,196.00 in taxable sales and collected $51,855.01 in consideration from customer.  This over collection was for the $5,659.02 in sales taxes that will be due to the government on these sales.

Your posting might look something like this.  

QuickBooks does not allow direct posting of sales tax to the QuickBooks Sales Tax Center so a Sales Receipt has been created in QuickBooks for $46,196.00, and an entry of $5,659.02 for sales taxes in the batch has been added to the QuickBooks Sales Tax Center. To prevent double posting of funds collected and sales made in the Journal Entry and the Sales Receipt postings, the Total Collected and Total Sales lines are reversed in the Journal Entry below.