Sales Tax on Purchases


How can I set up a means of payment for goods purchased?
I would like to enter the sales tax due in Purchases/Receive Inventory and have it show up in an account payable.
In other words, .01(quantity) GL accolunt xxx x $100(unit price) = $1.00(amount)
PT Complete 2005
CSSJR
Reply to
Claude S. Sutton, Jr

I would just add it to the cost of each product (along with a pro- rated shipping charge). This way you get the true cost of goods sold.
The down side to this is that the "price" paid does not match up with your vendor's price, so if you are using the systems to generate PO's then they won't match up.
The other way is to create an additional non-stock inventory item called sales tax (and shipping) then create an additional line item with those and post to a COGS account for sales tax in the same way freight in would be.
Dan Fazzini Jr. Business Accounting, Human Resources Webdesign, Database Management & More
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On Oct 31, 1:21 pm, "Claude S. Sutton, Jr" wrote:
Reply to
FastFazz

Whoops!
I hit the mail button out of habit and not the follow up button, so here it is again for the newsgroup.
============================================================== I appreciate the reply, but the question I have is how to record sales tax due that has not been billed by the vendor.
I am in a state that now requires manufacturers to pay the sales tax on good purchased directly to the state, not to the vendor.
In other words, those of us who have a tax number do not pay sales tax to our vendors, we instead must keep track of which purchases are taxable and pay them directly to the state.
So far, every entry I have made on the Purchases/Received Inventory page gets added into the total at the bottom which results in it showing as money due to the vendor when I need to show it as money due to the state.
CSSJR
Reply to
Claude S. Sutton, Jr

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