Use Purchase orders and no physical inventory

My Company is a service oriented business and I do not need to track a physical inventory. Although, I would like to use purchase orders to buy services items and support items for my business. When I enter these "service" items in a purchase order how do I include the sales tax in the purchase order. Should I creates a "Sales Tax" non-inventory item and add it as a line item?...Or is there another way?

Thanks...Fred

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fred
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You do not enter sales tax paid on goods purchased separately but it is included in the cost itself. Say amount paid by you towards cost is $200.00 and that towards sales tax is $16.00. ie the total cost incurred by you is $216.00. This amount will come in the amount column of Purchase Order.

Mike Block - QuickBooks Tax Cut C.P.A. Intuit paid me to make QuickBooks better!

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Mike Block-Tax Cut CPA

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