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BWalters

Use Tax

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I would like to be able to start accruing use tax at the time of invoice entry in A/P to make it easier to do our quarterly S&U tax report. After trying to test this in a test company, it does not seem that this is a possibility in BW 2018. Can someone comment on how they handle use tax within BW 2018? I am located in SC and have 8% sales tax in my county, but we frequently purchase items that either have no sales tax on the invoice or are at 7% or lower from surrounding counties. Having to keep a copy of each invoice/credit card receipt is becoming a nuisance and, in my opinion, leaves room for much error (i.e. missing invoices). 


Any help solving this issue would be appreciated. 


Thank you. 

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    Unfortunately,  BusinessWorks does not track use tax.  Use tax will need to be handled manually.  However, if you want to post the Use Tax on the Accounts Payable Invoice the following steps may work for you.

    To post the Use Tax amount with the Accounts Payable Invoice:

    In GL, Accounts, Maintain Chart of Accounts, create a new liability account for Use Tax Liability and an expense account for Use Tax Expense

    When you create the Accounts Payable invoice for the vendor, on the first line - expense for the amount you regular do for the vendor.  One the second line,  select the Use Tax Liability account and enter the amount as a negative. Then on the third line, enter your Use Tax expense and enter as a positive.  The negative amount for the Use Tax Liability and the positive amount for the Use Tax Expense will off set each other and not effect the Total Accounts Payable Invoice amount.

    Next, you may want to copy the invoice from the vendor and put in a file for tracking and/or reporting purposes.

    You can monitor amounts in the Use Tax Liability account by running General Ledger report by going to GL, Reports, Account Detail Report.

    When it is time to pay, go to CM, Checks, Instant check and issue a check for the Use Tax Payee and offset the Use Tax Liability account.

    Thanks,

    Coleen

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