Peachtree 2006 Can I enter sales tax into a vendor's invoice

We are a small company and many times the owner will shop retail stores
to purchase equipment for resale; but, he does not file a resale form
with these stores. I end up with sales tax on the vendors receipts.
How can I enter the sales tax into a vendor's invoice when I
Purchase/Receive Inventory? I am learning as I go with Peachtree. I
do not have an accounting background - only one bookkeeping class under
my belt. So, I am lost. Can someone please help me.
Reply to
J
Create a GL code within your costs of good section for sales tax. One it helps from the administrative perspective of posting. Two it will help bring it to your owners attention how much sales tax he is paying (needlessly). If it is significant enough he will start carrying a copy of the resale certificates. TK
J wrote:
Reply to
TKnTexas
Does your company collect and remit sales tax on the products it sells? If so, you should have a liability account set up as Sales Tax Payable, or something similar to that. If that's the case I'd post the sales tax paid in error to Sales Tax Payable. If you do this in the purchase/receive inventory screen it will flow through as a debit rather than a credit to the Sales Tax Payable account, so it will decrease your Sales Tax Payable liability. Then you can use this to offset your sales tax payment to the state.
Check with the taxing agency in your state to find out the procedure for getting a refund. I'm in Texas, and as long as the tax was paid in the same local taxing district as the sales were made, we can simply take a credit on the sales tax return for tax paid in error.
J wrote:
Reply to
dhmarx
Does your company collect and remit sales tax on the items you sell? If so, you should be able to get a refund of sales tax paid in error, and it might be as simple as taking a credit on your sales tax return. Check with the taxing authority in your state to see how to do this.
If you can simply deduct it from your sales tax remittance, here's one way to handle it.....You should already have a liability account called Sales Tax Payable, or something like that. When you post the transaction in the purchase/receive inventory screen, post the sales tax paid in error to the Sales Tax Payable account. When you do that in the purchase/receive inventory screen it will flow through as a debit to Sales Tax Payable. Debits decrease liabilities, so you will be decreasing your Sales Tax Payable liability account. Then when you remit the sales tax to the state, reduce your sales tax payment by the amount of sales tax paid in error. It's a good practice to review the Sales Tax Payable GL account each time you make a sales tax payment to make sure everything is posted properly and that you are paying the correct amount.
If it's not enough money to justify the time it takes to file for a refund, I agree with the previous poster. Include it on the financial statements so they will know how much they are losing by not carrying the document.
Also, one way to encourage the owner to carry a document is to shrink it on a copier that will let you adjust the size. That way it stands a better chance of fitting in the wallet neatly.
J wrote:
Reply to
dhmarx

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