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Apply Payment to Sales Tax Payable Liability

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Posted on by 161

Hello, 

I may be overthinking this, but we have our Sales Taxes hitting our Sales Tax Liability Account. 

We have our Vendor (Dept. Of Rev) we have to pay. 

How do I correctly apply this payment against the Sales Tax Payable Account. 

I need to apply the payment somewhere, but without creating a bill I'm a little lost. 

When I pay the vendor it reduces the Sales Tax Payable Account, but I'm still left with an unapplied payment giving the vendor a negative balance. 

Thanks, 

  • Suggested answer
    Roger Noden Profile Picture
    Roger Noden 29 on at
    RE: Apply Payment to Sales Tax Payable Liability

    Steve, thanks for the answer. I had to update the 20600 Sales Tax Payable account to allow Direct Posting, after that I think this worked as expected for us (note: I'm not associated with the original poster).

  • Verified answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Apply Payment to Sales Tax Payable Liability

    Hello,

    Create a Purchase Invoice to the Department of Revenue. On the Purchase Line, Type - G/L Account, No. = Sales Tax Payable Account.

    Hope this helps.

    Thanks,

    Steve

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