In Virginia, there is a dealer's discount on sales and use tax. How do I account for the reduced amount in Quickbooks? Quickbooks correctly calculates the amount owed, but now I need to apply the discount.
When you are at the Pay Sales Tax window, there is an option to "Adjust Sales Tax Amount" or similar. Click on that. You will get a new window: type the amount of discount in. Make sure that you are decreasing the sales tax. (Choose the correct bubble.) The account to use should be an Other Income account (you can even make up one called Sales Tax Discounts if you need to track it separately). That's it.
I hope I could help.
Reka
