Use these instructions to record a discount, credit, fine, penalty, rounding error, etc.
to the sales tax you owe.
Examples of when you need to do this task
If the Pay Sales tax window is open, click Adjust.
Otherwise, go to the Vendors menu, click Sales tax, and then click Adjust Sales tax
Choose an Adjustment Date.
Fill in the Entry No. field. More ...
If this is the first time you're entering any type of adjustment
(including general journal entries), the Entry No. field will be blank. Enter a
number for your adjustment. Many users enter GJE1 (for General Journal Entry
1). Any subsequent adjustments will increment this number automatically. This
number appears on reports that include the sales tax adjustment and is also
useful for finding adjustments.
What if the number is the same as the last time?
QuickBooks numbers all adjustments automatically (including general journal entries),
incrementing the number each
time you make an entry. If this preference is turned off, the number will be
the same as for your last adjustment. To turn the automatic numbering preference back on:
Go to the edit menu and click preferences.
In the Preferences window, click Accounting in the list on the left.
Click the Company Preferences tab.
Select the "Automatically assign general journal entry number" checkbox and click OK.
(Optional) If you track classes, the Class drop-down list appears so you can assign a class to this adjustment.
Click the Sales tax Vendor drop-down list and choose the tax agency to which the adjustment applies.
Click the Adjustment Account drop-down list and choose an adjustment account.
Which account should I use?
If you're making the adjustment because you received a credit or need to apply
a discount, choose an income account, such as Other Income.
If you're making the adjustment for a fine, penalty, or interest due, choose an expense account, such as Interest Expense or Non-deductible Penalties.
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.
In the Adjustment section, select whether you want to increase the sales tax (for a penalty, fine, or interest) or decrease it (for a credit or discount), then enter the amount.
(Optional) Enter a memo to describe the adjustment.
Important: If you made the adjustment by clicking Adjust in the Pay Sales tax window, any tax agency
that you had previously checked will need to be selected again. Otherwise, the sales tax payment check won't be recorded.
Learn about sales tax items.