I have the same issue. Read my post here: https://quickbooks.intuit.com/learn-support/en-us/taxes/how-to-record-estimated-pre-paid-sales-tax-i...
I submitted feedback and so should you. Here was mine:
The state of CA is requiring us to make monthly "estimated" sales tax payments, but our filing requirements continue to be quarterly.
QBO with auto taxes turned on does not allow for proper recording of sales tax prepayments. The suggested work-around to record such a payment is to add an adjustment. However, when adding a "pre-payment" adjustment, the only accounts types allowed are expenses. For some reason, this actually increases the tax liability. When adding a "prior pre-payment adjustment" one is able to choose between an expense account and an income account. You are able to then record the payment as "income" and then from the bank feed, categorize your payment to the same income account to zero it back out.
Ideally, one should be able to add a sales tax payment on an open period. Somewhat less ideally, one should at least be allowed to choose a bank account from the "pre-payment adjustment" which should result in a decreased liability on the sales tax account and a "sales tax adjustment" transaction which can be matched from the bank account.
Attention QuickBooks! This is not an isolated problem. Here is a list of some others with the same issue:
1. https://quickbooks.intuit.com/learn-support/en-us/taxes/can-someone-help-with-california-sales-tax-p...
2. https://quickbooks.intuit.com/learn-support/en-us/taxes/applying-sales-tax-prepayments/00/1051455
3. https://quickbooks.intuit.com/learn-support/en-us/taxes/sales-tax-prepayments/00/1082439
4. https://quickbooks.intuit.com/learn-support/en-us/taxes/sales-tax-prepayments/00/1269319
5. https://quickbooks.intuit.com/learn-support/en-us/taxes/as-of-2022-we-are-scheduled-thru-the-state-t...
6. https://quickbooks.intuit.com/learn-support/en-us/taxes/sales-tax-record-payment/00/880413
7. https://quickbooks.intuit.com/learn-support/en-us/taxes/how-to-record-prepayment-of-sales-tax-using-...
