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Hoots : How do I deduct from Sales Tax Payable in Quickbooks? (This question could probably use a better title) My current process for paying sales tax works as follows: I collect payments against invoices from clients throughout - freshhoot.com

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How do I deduct from Sales Tax Payable in Quickbooks?
(This question could probably use a better title)

My current process for paying sales tax works as follows:

I collect payments against invoices from clients throughout the month

As I collect these payments, Accounts Receivable decreases and Sales Checking* increases, naturally

At the end of the quarter, I then transfer the sales tax portion of the payments I collected throughout the month from Sales Checking* to Sales Tax Checking*

I noticed that this obviously doesn't impact my Sales Tax Payable account, which remains unaffected. How do I then account for the amounts that I am transferring from Sales Checking* to Sales Tax Checking* in Sales Tax Payable so I see an accurate representation of sales tax that I truely still owe?

Sales Checking = Cash account that is connected to a checking account
at my bank.Sales Tax Checking = Another account that is connected to a
checking account at my bank. This account only takes transfers from
Sales Checking and my state then deducts the sales tax from there
quarterly.


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Write Check

Bank Account: Sales Tax Checking

Pay to the order of: Massachusetts Department of Revenue (in my case)

Account: Sales Tax Payable

Done.

This will decrease Sales Tax Payable AND Sales Tax Checking.


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