Core Financial Modules

[JacquieP]

I have an out of state supplier who does not collect the sales tax for the sale. What is the best way to accure the tax liability within Sage and have it indicate what invoice and what items were purchased within our GL sales tax account? I need to remit the sales tax properly for this purchase.

Thank you

[kanes]

Is your AP set up to report sales tax? If not, you could use a GL contra-account.

Steve

MAS200 V4.30.21

[SPyle]

What if you set up your purchase order to reflect the sales tax?   When you process the invoice, you have your people include the tax amount in a "USE TAX PAYABLE" and offset to sales tax expense account.  That would build your payable with the Journal ID for tracking purposes.

[JacquieP]

Our AP is not set up for paying sales taxes. We have a limited amount of purchases that we would be responsible for paying taxes on. May I ask how you use this contra accoount and process it via Sage?

Thank you very much.

[jnelsonut]

Create a Payables account called "Use Tax Payable".

You get an invoice from your vendor for $500.00 that should have been taxed.

Enter through AP Invoice Data Entry

Enter the amount of the invoice for $500.00

On the lines tab enter first line to the expense account for $534.25 (lets assume your tax rate is 6.85%)

On the second line enter  -$34.25 and use the Use tax payable account.

Then at the end of the quarter I print a GL Detail Report for this account and Back into the other numbers on the Sales and Use Tax Return for the quarter.

For example if the GL Detail Report for the three months is $865.25 (this would be your tax liability for the quarter), I divide that by .0685 and would be my taxable purchases for the quarter was $12631.39.

Joe