QuickBooks Online Displays Wrong Sales Tax Values

Some QuickBooks Online users who override automatically calculated sales tax may see sales tax values incorrectly displayed when reviewing invoices.

Sellers who track marketplace facilitator taxes collected by online marketplaces like Amazon are more likely to see this issue because they’ll override taxes on documents to match what the marketplace collects.

Instead of displaying the value entered, QuickBooks Online displays the value that it automatically calculates.

This sometimes results in the invoice displaying a Balance due even when payment was received for the correct amount.

In the image below, an invoice was created for a customer in Alabama. Sales tax collected was $0.72 and saved. When the invoice is re-opened, QuickBooks Online displays the automatically calculated sales tax of $0.36.

QuickBooks Online invoice showing balance du

The Balance due field may be negative (as in the case of the image above) or positive.

This error is just a QuickBooks Online display issue. The amount that you originally recorded on the invoice was properly saved and recorded in the tax liability account.

To verify this, go to Taxes > Reports > Tax liability report in QuickBooks Online.

QuickBooks Online Sales Tax Liability Reports

You may need to adjust the date period so that QuickBooks Online includes the invoice in question.

Date select for QuickBooks Online sales tax

Find the state that was on the invoice (in this case, Alabama) and click on the amount collected to bring up the individual transactions.

Sales tax liability report for Alabama

Since we only have one transaction as a sample, we can verify that QuickBooks Online has correctly recorded the original sales tax amount entered on the invoice.

If you have more than one transaction, click on the amount collected to get a detailed transaction report.

Invoice transaction report for sales tax liability

The transaction report will give you a list of the transactions that affect this tax liability account. You can look up Document Numbers or view the document by clicking on it under the Transaction Type column.

Whether you’re entering these documents manually or using SellerZen to automatically import your Amazon transactions into QuickBooks Online, these display errors don’t affect your accounts.

The value you initially entered is correctly recorded for any affected accounts.

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