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 $820 in taxable sales and collected $57.40 in sales tax
Your posting might look something like this – first we reverse the sales and then the payments that were on the sales receipt. Notice the payments being reversed include the amount paid for sales tax collected but does not reverse the sales tax itself.
Next we post sales by category and then post the payments and offsets – such as gift cards redeemed. Your actual posting could be more complicated with order deposits received and applied, customer credit account charges, store credits issued and so forth but if you look you will see this pattern – reversing the taxable sales.
Gift Cards Redeemed