When my company accepts an deposit to purchase materials for a job, QB Help says that the proper way to do this is to create a Sales Receipt for the amount, with an Item such as "Upfront Deposit" Then, when creating the invoice, enter the Upfront Deposit item with a -1 Quantity and its amount, and it appears as a credit of sorts on the invoice. This works well for everything but calculating the Sales Tax Liability Report. The only way I know to accept a flat deposit (say $1000.00 even) is to make the item Non-Taxable. When I create the report for Sales Tax Liability, this shows up as a negative number in Non-Taxable Sales. Guess what? A negative NON Taxable sale is positive sales tax due! If it is a non-profit organization who gives us a $20,000 down payment, QB shows I owe sales tax on the $20,000. What am I doing wrong? If I make the upfront deposit item taxable, QB wants to throw the sales tax percentage on top of the actual deposit amount, making the final number higher, which won't work either.
- posted
18 years ago