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
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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