Sales tax paid by Check instead of Sales Tax Payment; Prior period adjustments; Receive Payments entered in prior periods; And so much more How to Find Sales Tax Errors. Start by creating both a Sales Tax Liability and a Profit and Loss report. The Total Income on both of these reports should the same. After reviewing and correcting your client’s sales tax preference settings, you are prepared to begin the following CDR task. Fix Incorrectly Recorded Sales Tax. QuickBooks uses a special Pay Sales Tax dialog box (as shown in the image below) to record the sales tax liability payments properly.
![Adjustment Adjustment](http://qbblog.ccrsoftware.info/wp-content/uploads/2009/02/salestax-item.png)
Resolution. Go to Company Settings Advanced tab:. In the Automation section, select ' Automatically apply credits'. Uncheck the box, so 'Automatically apply credits' is Off (this setting is ON by default).
Edit any credit memo which needs to be adjusted, and it will be sent to Avalara for tax calculation automatically. You can change price, item, address, or date, Save, then change it back and Save to trigger tax calculation. We suggest that you turn Automatically apply credits back on once adjustments have been made.