Sales Tax Line Item Journal Entry

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Introduction

In many U.S. states, the tax rate depends on your roof top location. Since many e-commerce solutions tax by zip code and QB can only tax by county, many of our users add tax as a line item. This article guides you through calculating sales tax payable.

Sales Tax Line Item

Our system creates a line item called sales tax. Go to your QB item and services list. Change the income account to a new account called sales tax income. All funds received for sales tax with be in this account.

Journal Entry

We recommend creating a journal entry to credit your sales tax payable and debit the sales tax income account. 

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