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bronxbomber91
February 18, 2023
Question

P&L Does Not Match Sales Tax Liability Summary

  • February 18, 2023
  • 1 reply
  • 0 views

Hello,

 

When I run reports for the same time period, the total sales under P&L report does not match the total sales under the Tax Liability Summary report.

 

I have done the recommended steps to find the offending transactions, and it seems that they boil down to my refunded invoices (credit memos), as well as a few non-inventory item sales. Now that I know the transactions, how would I go about making sure that credit memos will lessen the Tax Liability Summary income?

1 reply

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AileneA
February 18, 2023

Hello, bronxbomber91. 

 

Excellent for identifying the transactions that cause discrepancy of your account's. In order to guarantee that your credit memo will reduce the tax liability summary report. Open the credit memo and check if it's taxable. Once it's taxable, we can adjust the amount until it will be equal to the total amount of the transactions.  

 

For example, the credit memo is 500 worth of amount. Then the transaction is taxable, you can adjust the amount until it will become the same amount of the total.
 

 

 

Then we can run the Profit and Loss and Sales Tax Liability Summary report to check if they are already balanced. 

 

I've added an article that will help you personalize your reports and add the details that matter the most to your business: Customize reports in QuickBooks Desktop.


 

If you have any other concerns or questions, please don't hesitate to post it again on this thread. I want to make sure this is taken care of.

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bronxbomber91Author
February 18, 2023

Okay, but what if the transaction is not taxable? As I just want credit memo transactions to be deducted from the total sales in both reports.

 

Because as it sits right now, the sales tax liability summary shows about $5000 more sales for this period (compared to the P&L sales). So I am trying to find out how to get them to match.

MaryLandT
MaryLandT
February 18, 2023

I hope you're doing well, @bronxbomber91.

 

I'm very eager to lend a hand about why the Profit and Loss (P&L)won't match the Sales Tax Liability report (STLR) in QuickBooks Desktop (QBDT).
 

The total sales and total income won't always match due to transactions that may emerge in a data file that will unlikely for them to match. We can fix this by comparing the details of the totals by running the STLR and the P&L Standard report.

 

Here's how to run the STLR.

 

 

  1. From the Reports menu, select Vendors & Payables, then Sales Tax Liability.
  2. Double-click the Total for Total Sales column. This will open the Sales Tax Revenue QuickZoom report.
  3. Click Customize Report.
  4. Choose the correct report basis, Accrual or Cash.
  5. Under the Display tab, select the date range for the report.
  6. Under the Filters tab, choose Accounts.
  7. From the drop-down menu, select All ordinary income accounts.
  8. Still, under the Filters tab, select Transaction Type and choose Multiple Transaction Types from the drop-down menu.
  9. In the box that opens, put a checkmark next to all transaction types excluding the Invoice and Sale Receipt.
  10. Hit OK to return to the Filters window.
  11. Select OK again to return to the report.

 

Here's how to pull up the P&L Standard report.

 

  1. From the Reports menu, select Company & Financial, then Profit & Loss Standard.
  2. Double-click Total Income.
  3. Click Customize Report.
  4. Choose the correct report basis, Accrual or Cash.
  5. On the Display tab, select the same date range.
  6. Under the Filters tab, choose Accounts.
  7. From the drop-down menu, select All ordinary income accounts.
  8. Still, under the Filters tab, select Transaction Type and choose Multiple Transaction Types from the drop-down menu.
  9. In the box that opens, put a checkmark next to all transaction types excluding the Invoice and Sale Receipt.
  10. Hit OK to return to the Filters window.
  11. Select OK again to return to the report.

 

If you encounter any other issues with the Sales Tax Liability and need to pay taxes, please refer to these articles.

 

 

I'm just around the corner if you still need more help while managing the STLR in QuickBooks. I want to make sure that everything is sorted out. Take care and have a great day!

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