How do I record my Use Tax?

Use tax is due to the state when purchasing goods in a different state with a lower tax rate.  The amount to pay is the difference of the tax paid and the local tax rate.

Go to Transactions > Use Tax Report

  1. Select Month and Year to filter the reporting month.
  2. Enter the local Tax Rate to fill in the Rate column for every line item.
  3. If all items subject to Use Tax were purchased at the same tax rate, enter that rate in the Offset Rate field.  Otherwise, click in the Offset column and fill out the tax rate paid for each item.  If no tax was paid, leave blank.

Enter tax rates as whole numbers.  Ex:  (8.7% would be entered as 8.70).

  1. The Credit column shows the tax already paid and Due is the remaining tax to be paid to the state.
  2. Once all tax rates are entered, click Preview to review and print the report.
  3. Click Write AP
  1. Select the AP Date
  2. Enter the AP Vendor number or double click in field to select from list
  3. Click Write AP

The Accounts Payable entry will be automatically coded to copy the expense codes from items flagged for use tax.

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