QuickBooks Online may have adjusted the wrong sales tax liability account when a refund was created for a transaction with marketplace taxes. This affects users who are on the new automated sales tax engine.
Instead of adjusting the correct sales tax liability account, it may have adjusted sales tax liability account for where your business is located.
As a result, you may see a balance in your Marketplace Facilitator Tax account after you've paid or offset those Marketplace Taxes.
For instance, if your business is located in California, you may see a refund adjustment to the California sales tax liability account for a refund with a Washington state address.
To fix this and other possible refund issues, click on Taxes and run a sales tax liability report in QuickBooks Online. Scroll down and click on the taxes owed for your state.
Sort by Refunds to look through the refunds. If you find one with Billing address that is not from your state, then copy the zip code from the Billing address to the Location of sale field.
You may have to adjust the sales tax to whatever Amazon collected if QuickBooks Online automatically changes the tax calculation.
Once you save the document, QuickBooks Online will automatically adjust the sales tax liability accounts.
See below for a visual guide.
Click on Taxes and select Tax liability report from the dropdown menu.
Find the state where your business is located and click on the value under the Tax Amount column. Make sure you select the state and not any county or district.
Click on Sort and select Transaction Type. Click outside the box and let QuickBooks Online sort transactions for convenience.
This refund below has a billing address with a PA zip code instead of a CA zip code. We'll have to copy and paste the zip code to the Location of sale field.
If QuickBooks Online changes the sales tax calculation with the incorrect value, you'll have to override the sales tax with what Amazon collected. Click on the Sales tax, Override, and enter the correct amount (should match the Facilitator Tax amount on invoice). Confirm to save.
Save and close to have QuickBooks Online automatically adjust the accounts.
Once you've gone through and corrected the refunds, the accounts will be accurate.