Remove Tax Due Amount for a Tax Agency on Pay Sales Tax Page Arising from Payment of Tax Liabilities Via Enter Bills and Pay Bills.

Some users opt to pay tax due via Enter Bill and Pay Bills page. That being the case, the balance displayed on Pay Sales Tax page remains outstanding. To wash-out the same balance, perform the following:

1.    Navigate Transactions > Bank > Pay Sales Tax.

2.    Pay sales taxes for the related tax agency.

3.    View the GL impact for the said payment.

4.    Create a reversing journal entry of the GL impact.

o    Navigate to Transactions > Financial > Make Journal Entries.

o     §  Debit cash account

  §  Credit sales tax payable account and select the tax agency's name under Name column.

§  Assigning the same produces no effect on the vendor's outstanding balance.

§  Click Save.