Part 1: Recommended Reports
The recommended sales tax and sales reporting reports that tie to the QuickBooks posting are noted below. Each report in the DX1 reporting module is built on specific criteria designed for a dealer’s needs. For sales tax report, it is recommended that you use:
Sales Tax Liability by Category
Sales tax Liability by Tax Rate
Note: Sales Liability by Tax Rate should only be used if required for your dealership for reporting purposes.
Part 2: Reconciling DX1 Sales Tax Activity in QuickBooks
The following is a step by step process to review the sales tax transactions in your sales tax payable account in QuickBooks.
Go to List > Chart of Accounts
Find Sales Tax Payable Account
Right-Click on Sales Tax Payable
Click QuickReport Sales Tax Payable
Change Dates to Sales Tax Return Month (i.e. 8/1/2013-8/31/2013)
Sort by Date
Note the starting balance in bold at the very top underneath the word Balance
Look through your transactions and find the sales tax payment. It should equal the beginning balance of this month’s sales tax activity. If you don’t see it there, go find the check in your register and make sure it was coded to the sales tax payable account. If it is in the QuickReport but is the wrong amount, you will need to research that variance by reviewing your sales tax returns from the previous month(s).
Sort by Memo
Scroll all the way to the top
Look for transactions that the memo does not start with “Z:”
Double-click on each of them that have a tax amount. If it is a non-DX1 transaction then print it out. You will need to adjust your DX1 sales tax reports from #1.
Total all non-DX1 transactions
Total Balance at the end should be the total sales tax collected on the 117B plus any tax collected non-DX1 transactions. If your beginning balance was incorrect, your ending balance will also be incorrect until you get it fixed. Contact your CPA. You may need to make a correction in QB or amend previous month’s sales tax returns.