Adjusting Sales Tax Payable

While working with a client from New York, he stated, "How do I account for the discount the State of New York gives me for paying my sales tax on time?"  Here are the steps we followed to enter this income:

Go to vendor, sales tax, adjust sales tax (click on picture below to enlarge)

Select to decrease the sales tax and use "other income" or miscellaneous income for the adjusting account since this income is unearned income:

Next, when you go to make the payment, go to vendor; sales tax; pay sales tax and make sure you click on the amount due and the adjustment which will give you the correct net sales tax payment.

Lynda

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