tax collection and tax payable seperate in QB

Forum|Forum|11 months ago
July 19, 2025
1 reply
2 views

hello

I have recently taken over the job, and when I issue invoices, the 13% tax is automatically generated and applied to the preset account tax collection from the invoice, i.e., a/c 25500. However, when the time comes to input bills, the tax payable also goes to the same account 25500. My manager wants to separate the tax account into tax payable and tax collectable. I try to separate it but was not successful. then my manager told me use excel issue invoices instead of Quickbook, and use manual input tax by create general entries in Quickbook.

Any suggestions that I can separate the tax account? thank you.

QuickBooks Accountant Desktop

FaithA

Level 1

You will need to create and map separate accounts and adjust sales tax preferences to ensure taxes are tracked accurately, lwhk2020.

First, create two separate tax accounts:

Navigate to Lists and select Chart of Accounts.
Create two new accounts:
1. Sales Tax Collectable: For taxes collected from invoices.
2. Sales Tax Payable: For taxes payable from bills.
When assigning both account types, I suggest collaborating with your accountant for accuracy.

Follow these steps to adjust Sales Tax Preferences:

Go to Edit and then click Preferences.
Select Sales Tax.
In the Company Preferences tab, ensure sales tax is activated and correctly set up for the tax agency.
Assign Sales Tax Collectable to track collected taxes and Sales Tax Payable for payable taxes.

Additionally, I recommend consulting with your accountant or tax professional to ensure proper setup and compliance with any reporting requirements specific to your organization.

If you have more questions, feel free to reply to the thread. We'll be here to assist you.

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