Quickbooks 2004: Sales Tax Liability report doesn't compute with Sales Tax Revenue report...why?

Posted on 2005-04-18
Last Modified: 2010-05-18
Hi All,
I have been paying Sales Tax to the state of TN quarterly as required.  I began using Qbooks last October, which has allowed me only one opportunity to pay sales tax and use the Sales Tax Liability and Sales Tax Revenue reports in Qbooks.  The first time there were no issues.  The Revenue report's bottom line of taxable income matched with the calculated tax liablity...the program appeared to do it's job correctly.

This time, something is different.  The Sale Tax Revenue reports a taxable amount of 28,000.  The Liability report shows that I owe tax on a much greater amount than that (about 1/3 more).  Using the "Pay Sales Tax" feature, it produces the higher number as well.

Question: Can any one offer some insight as to where to look for a possible discrepancy either in Qbooks or the way I'm thinking about it?

Question by:colepc
    LVL 10

    Expert Comment

    Are both the reports on the same accounting basis? (cash, Accrual). I'm not familiar with your sales tax regime, so this may not apply to these reports, but it's a common issue on other reports.

    LVL 10

    Accepted Solution

    Another possibility: have you recorded the previous sales tax paid, in a way that makes QuickBOoks close that period out? That would make the difference in the amount payable equal to the amount you paid the first period.


    Author Comment

    I found the issue.  I had ran Sales Tax Liability and Sales Tax Revenue reports for Q4 last year.  I paid the full amount.  I've since realized that after I paid the amount in full, I had a client that wanted to date an invoice for a large project for 12/31/04.  This was done after paying the sales tax and therefore, reports for Q1 of '05 showed me having a balance carried over from that quarter.

    Thanks!!   Points to you for the participation.
    LVL 10

    Expert Comment

    Hi, many thanks for the points, and glad you found the answer!


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