We pay use tax based on payable invoices during a given month. For example, at the beginning of December, we calculated all the invoices we paid during the month of November that we need to pay use tax on. Currently, there's no report for this in Sage although there is a button to calculate use tax per payable invoice. It would just be nice to have a report so we don't have to manually keep adding items to our excel spreadsheet.
by: Rhiannon T. | over a year ago | Accounts Payable
Comments
we also need reporting and separate handling of use tax for state reporting.
EXACTLY!!
That would be helpful!
This is on behalf of Kevin Hayes
Trice Construction Company
I used one of the User Defined field for the tax district, needing a "Match" to the list. I then enter one line for Acct 2110 as a negative, which increases Sales Tax Payable. The next line is for Sales Tax Expense as a positive. I run a report for A/P for the tax district & select lines with Acct 2110 only. Hope this helps.
We have a "use tax payable" account as well, and all we do is check the balance at month end.
We have suppliers that deliver to multiple tax districts based on the job location. If each vendor has the option to choose from those different tax districts in the A/P entry screen that would save us so much time.
I agree with Elaine E. on this. There is no need to change how use tax works in Sage if you have an understanding of the program. You can easily put use tax to separate GL account, with a SL for for each tax district and then run a report each month, which easily balances out.
I agree with Cynthia. We also have vendors that ship to different locations with different tax rates and need to be able to enter or choose from the A/P invoice entry screen a use tax rate from the districts that are already setup. Another idea would be to have the use tax rate pre-fill from the job's sales tax rate not the vendor profile.
Delivered in version# 22.1.
Note: you don't have to check the box to force the GL expense accounts affected. If left unchecked the use tax hits the same account as the AP invoice. And you can use subaccounts for the liability account and the subaccount was automatically created using the tax district number and name
When we enter the invoice, we enter a positive entry for Sales Tax Expense and a negative entry for Sales Tax Payable. Since the negative entry is a Credit, it increases the amount of Sales Tax Payable owed. Just a workaround.
We purchase material and it ships to our warehouse but if we use it in another city their sales tax is different, would be nice if Sage could keep track so I don't have to do another 4 steps for month end.