How to do a Sales Tax Liability Adjustment
This help topic explains how to use the Sales Tax Liability Adjustment form.
Using the Sales Tax Liability Adjustment Form
Each time you sell something, Total Office Manager offers you the chance to add sales tax to the sale. When you do Total Office Manager, keeps track of the sales tax collected and who you owe the money to. This makes it easy to pay the particular tax authority that you owe the money to.
This form allows you to adjust the amount that Total Office Manager feels you owe a specific sales tax vendor. Use this form when you are certain an adjustment is required.
Accessing the Sales Tax Liability Adjustment Form
- From the main menu click Customers | Sales Tax | Sales Tax Liability Adjustment.
|Adjustment Date||Total Office Manager automatically populates this date field with the current date (according to your computer’s clock). You can change it if you need to.|
|Entry No.||Entry Number. Total Office Manager automatically populates this field with the next available number but you can change it if you need to.|
|Vendor||Sales Tax Vendor. This refers to the vendor that you owe the sales tax to. This is the entity that you PAY sales tax to. This may be your local state or county government.|
|Sales Tax||Allows you to select which sales tax to pay.|
|Adjustment Account||The account (from Chart of Accounts) that will show this adjustment.|
|Increase Sales Tax By||Check this option if you are trying to INCREASE the amount of sales tax you owe the entity (sales tax vendor) you selected above.|
|Decrease Sales Tax By||Check this option if you are trying to DECREASE the amount of sales tax you owe the entity (sales tax vendor) you selected above.|
|Amount||This is the amount of money to increase or decrease what you owe this sales tax vendor.|
|Memo||This area gives you a place to describe the adjustment or the reason you made it. We highly recommend that you use Total Office Manager’s memo fields.|
|Save||Commits the changes to your sales tax liability and closes the form.|
|Exit||Closes the form and does NOT change your sales tax liability.|
- Open the Sales Tax Liability Adjustment form as directed above.
- Change the Adjustment Date if needed.
- Change the Entry Number if needed.
- Select a Sales Tax Vendor (taxing authority) that you pay sales tax to and wish to adjust the amount you owe.
- Select the Adjustment Account that you wish to reflect the adjustment.
- If you wish to increase your sales tax liability, select the “Increase Sales Tax By” option. If you wish to decrease your sales tax liability, select the “Decrease Sales Tax By” option.
- Enter your adjustment amount in the Amount field.
- Please enter a good descriptive memo here to explain why you felt it was necessary to adjust your sales tax liability.
- Click OK to commit your changes.
Tips Related to Paying Sales Tax Liabilities
- Accountant’s Note: This form essentially does the same thing as an Adjusting Journal Entry but makes the process simpler for the average user.
- You can edit an adjustment by simply going back to the adjustment and changing it.
- Total Office Manager should calculate sales tax liabilities correctly. If you notice regular errors, be sure to carefully check how you setup your sales tax. We recommend that you quickly seek qualified help with sales tax setup and management.
- Be careful to pay your sales tax in full and on time. The interest and penalties can be significant.