Amounts in Tax Collected on the Sales Tax Liability report and in Amount to Pay in the Pay Tax Agencies dialog box may differ in Microsoft Office Small Business Accounting (896707)

INTRODUCTION

This article describes why the Tax Collected column on the Sales Tax Liability report may differ from the Amount to pay box that is in the Pay Tax Agencies dialog box in Microsoft Office Small Business Accounting.

Information about sales tax liability

The Tax Collected column on the Sales Tax Liability report displays the total sales tax collected from customers for a selected date range. The Amount to pay box in the Pay Tax Agencies dialog box is calculated by using the system date and the payment terms that are assigned to the tax agency.

For example, a tax agency has a monthly payment term, and the user has selected to pay sales taxes on an accrual basis when the customer is invoiced. If the user posts an invoice in the current month, the sales tax amount from that invoice will not be visible in the Pay Tax Agencies dialog box until next month. However, the tax amount will appear on the Sales Tax Liability report if the date range on the report includes the invoice date.

Note To select to pay sales taxes on an accrual basis or on a cash basis, click Preferences on the Company menu, and then click the Company tab. The option to select either payment method is in the Taxes pane.