Choose the filter “Transaction Type” near the bottom of the Filter options to engage the Transaction Type filter. Click the “Filters” icon at the top left of the report Toolbar.Ģ.
Partial payments are applied to sales tax in equal proportion to other Items on the Invoice.ġ. Any differences will point you to the errors on the Sales Tax Liability.ĮXPERT TIP: The date on the Receive Payment, not the date on the Make Deposit or the Invoice, is the date that the sales tax liability will be impacted on cash basis. If the reporting basis or the dates are not the reason your Profit and Loss does not match your Sales Tax Liability report, create another Profit and Loss report and filter it for income transactions and compare it to the unfiltered Profit and Loss report. If they aren’t the same, make sure the dates and the reporting basis on the Profit and Loss report matches that of the Sales Tax Liability report.ĮXPERT TIP: To set the reporting basis for the Sales Tax Liability report, go to QuickBooks > Preferences > Sales Tax
The Total Income on both of these reports should the same. Start by creating both a Sales Tax Liability and a Profit and Loss report.
Spoiler alert: starting with QuickBooks Mac 2014, you can use the same “Adjust Sales Tax Due” feature that’s been available in Windows for years. Here, we have provided a step-by-step guide for finding sales tax errors and our advice for fixing them. For others, the conversion to QuickBooks for Windows is successful and provides reports not available in QuickBooks for Mac, but finding the problem provides little relief if fixing it in Windows or Mac is not an option. Some of us – determined to track down those nagging discrepancies – turn to “round-tripping” (converting the file from Mac to Windows and back to Mac) only to find the data scrambled in the process.
Of all the areas that QuickBooks ® for Mac consultants struggle with, finding and fixing sales tax errors is one of the toughest because we can’t get the detailed reports our Windows’ counterparts have access to within the software. There’s certainly no requirement forcing you to create a Journal Entry for an overpayment and subsequent and refund, but doing so can help keep your books in order.ĭid this tutorial work for you? Let us know in the comments section below! Journal Entries are notes that can help you remember activity within your account. While the above steps will allow you to issue a refund for an overpayment, you may still want to use a Journal Entry to write off overpayments. Congratulations, you’ve just issued a refund for an overpayment! Double check the information to ensure the overpayment/refund amount is correct, at which point you can issue the refund. This should appear in a n “Issue a Refund” window. At the bottom of the Customer Payment window, you should an option for “Refund the amount to the customer.” Click this option to proceed.Īfter selecting “Refund the amount to the customer,” you’ll have the option to refund the overpayment the customer. Next, open the Payment transaction, at which point you should see the Customer Payment window appear on your screen. After logging in to your account, access the “Open Invoices” report and find the credit with a Payment type transaction. Secondly, it helps to keep your books in order, making tax time a little easier come next April.Īssuming you use Quickbooks, you can issue a refund to the customer for an overpayment from the customer payment window. First, it shows customers that overpayments don’t go unnoticed. Doing so is important for several reasons. Whether the overpayment is $100, $1,000 or just 10 cents, you should still issue a refund. If the customer paid $600 for a product that costs $500, for instance, the overpayment amount is $100. This is done by subtracting the actual product or service price from the customer’s payment. To issue a refund for an overpayment, you should first determine the amount of the overpayment. When this occurs, it’s important for business owners to issue a refund to the respective customer for the difference. However, some businesses will still experience overpayments, especially if they accept payment after the delivery of goods and services. If you require payment at the time of sale, for instance, you can double-check the amount to ensure it’s correct. Has a customer overpaid for a recent product or service purchased from your company? Most business owners will rarely encounter this scenario.