Sales Tax Liability (Gross Total)

Thank you for providing additional details about your issue, brendam24. I understand while your actual sales tax liability appears correct, you're noticing discrepancies in the Gross Sales Column. Let's work together to address this issue and find the optimal solution for your situation.

In QuickBooks Online (QBO), the Gross Total represents the total amount of all recorded sales transactions, including successful payments and those initially recorded but later bounced. If the bounced check was applied to an invoice, QBO may still count that amount as part of your gross sales, resulting in the inflated total you're observing.

To accurately reflect only the successful payments in your Gross Total, it's crucial to ensure the bounced check is properly recorded. I recommend using an Expense entry to record bounced checks instead of adjusting the invoices. This approach prevents double counting in your Gross Total and ensures only actual payments received are included in your sales tax calculations.

Take note that you'll have to undo or delete the progress you've made first. Once done, here's a step-by-step guide to implement this method:

Step 1: Recategorize the bounced payment to reopen the original invoice.

1. Navigate Transactions and choose Bank Transaction.
2. Locate the bounced check in the bank feed and click it to expand the transaction details.
3. In the Vendor/Customer dropdown, select the customer whose payment bounced.
4. In the Account dropdown, click Accounts Receivable.
5. Once done, tap Add.
   
   

This action creates an expense entry, accounting for the deducted money and maintaining accurate records. It also offsets the unpaid invoice. If you don't have a bank connected to QuickBooks or the returned payment hasn't appeared yet, you can create an expense for this transaction and match it to your bank later.

Step 2: Unapply the bounced check payment from the original invoice.

1. Go to the Sales menu and click Customer.
2. Find and select the customer whose payment bounced.
3. Locate the payment for the bounced check and tap Edit.
4. Select the payment link made.
5. Uncheck the box for the invoice the payment applied.
6. Click the new expense you created in Step 1 and select Save and close.
7. A message displays saying that the transaction is linked to others. Select Yes.

For more detailed instructions, refer to this article: Record a returned payment or bounced check in QuickBooks Online.

Additionally, for guidance on filing your sales tax return and recording your sales tax payment, you may find this article helpful: File your sales tax return and record sales tax payments in QuickBooks Online.

I hope this explanation clarifies the discrepancy in your Gross Total. If you need assistance reviewing your existing entries or adjusting your process for recording bounced checks or other QBO-related concerns, please don’t hesitate to reach out. We are here to ensure the QBO experience is as smooth and accurate as possible.