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
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
gets added into the total at the bottom which results in it
money due to the vendor when I need to show it as money due
to the state.
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