Kryptronic Software Support Forum

polarize · 02-10-2019 03:16:00

I know this is a question more geared towards QuickBooks but in setting up K9 is was recommended to turn off the "Do you charge sales tax?" option in QuickBooks preferences so that K9 will handle sales tax computations. Now that we are preparing to file and pay our state sales tax collected we are running into an issue where the "Manage Sales Tax" icon and menu item doesn't exist in QuickBooks. We first tried to just simply write a check drawing from the "Sales Tax Payable" COA but because it is considered a "Other Current Liability" account QuickBooks is pulling the dialiog to pay this item in "Manage Sales Tax".

Does anyone have any suggestions for how to pay collected sales tax from the "Sales Tax Payable" in QuickBooks for accounting purposes? Apparently it is not as simple as just writing a check that debits from that accounting item.

Thank you

webmaster · 02-11-2019 07:48:35

I'm not sure if you're running the K9 QuickBooks Web Connector or not, so I'll answer this as if you are. When using the QBWC, K9 sends sales tax down to QB as a sales tax item, and that item is tied to a vendor who happens to be a tax locality. Doing it this way gets you sales tax payable based on the amount(s) in the sales tax item account.

polarize · 02-11-2019 11:59:34

We do have the following sales tax items in QuickBooks (XX = State Abrev for each state)....

ORDSTAXXX
ORDSTAXXXWO

Both items are attached to the state agency and amounts are aggregated in "Sales Tax Payable" as an accrued amount. Because "Sales Tax Payable" is an "Other Currently Liability" account QuickBooks shows a dialog against this....

"The account you chose could be a sales tax liability account. If you're trying to pay sales tax, you should use the Pay Sales Tax window instead. Recording this check transaction will not be considered a payment against any sales tax owed. To pay sales tax, go to Vendors menu, choose Sales Tax, and then click Pay Sales Tax"

This menu item doesn't exist in Vendors menu because we have sales tax in QuickBooks turned off. It seems to be getting triggered because of the two sales tax items crediting to "Sales Tax Payable" when trying pay the tax using the assigned state agency.

webmaster · 02-12-2019 07:52:02

Try turning sales tax on temporarily to produce the report you need. It sounds like the items and vendors are both set up correctly.

Kryptronic Software Support Forum

#1 02-10-2019 03:16:00

Managing Sales Tax Payments to State in QuickBooks

#2 02-11-2019 07:48:35

Re: Managing Sales Tax Payments to State in QuickBooks

#3 02-11-2019 11:59:34

Re: Managing Sales Tax Payments to State in QuickBooks

#4 02-12-2019 07:52:02

Re: Managing Sales Tax Payments to State in QuickBooks

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