Quicken & Other Budget/Accounting Software/Sales taxes



I am wondering if quickbooks sales tax works better if the GL account for sales tax collected is the same GL account as for sales tax paid. I currently have a different GL account for each. However, if I have to refund a sale, the sales tax gets recorded in the sales tax paid account instead of as a reduction to the sales tax collected. I assume this is because I process refunds by check.

What do you think? Is there another way to process refunds that would put the sales tax into the proper account, or should I just have one sales tax account for both.

Thanks,I hope you can understand my question.


ANSWER: Hi Gary,
QuickBooks is designed to only use one account for your sales tax liability, therefor you should only use one account for the sales tax payable. This account is automatically set up when you set the sales tax preference under preference.
Hope this helps.

---------- FOLLOW-UP ----------

Thanks for your quick response. I understand what you saying and it seems to make sense. When I set up the vendor account for the tax agency I found a check box to add a GL account to track taxes on purchases and one to add a GL account to track taxes on sales. This worked fine for me as long as you don't have to refund a sale. What is the point of having this option if it isn't to use it the way I was?


ANSWER: Hi Gary,
What year and version are you using?

---------- FOLLOW-UP ----------


This is Quickbooks Premier Accountant Edition 2012

Hi Gary,
sorry for all of the questions, but I'm a bit confused. I am quite familiar with 2012 premier and I cannot recall the window that you are referring to. If you would care to call me on this, there would not be any charge of any sort. 724-557-4652

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Karin Hostetler


I am a certifed member of QuickBooks® Professional Advisor group and can answer questions on Quickbooks® Basic and Pro, all versions through 2011. I do onsite, telephone and online consulting through my website at: http://www.karinhconsulting.com Have a complicated issue that you can't put into one question? Consider a one time FREE 60 minute phone consultation. (724) 557-4652


I have worked with Quickbooks® since version 1, and have had a tip published on the Intuit website. I work exclusively with small business owners in setting up Quickbooks®, giving on-going support to tweak the reports, resolving data issues and correcting problems. I offer monthly, quarterly and yearly tune-ups to prepare the clients data for presentation to their CPA at year end.

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I have a degree in Administration and Management with 20 years of hands on business experience in many fields

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