Tracking sales tax paid for tax exempt jobs

Question

We were working with our consultant this morning and stumbled upon an issue about how to track sales tax paid on material for jobs that are tax exempt. 
 
 I was told this isn't usual and therefore isn't easy in Sage. I find it hard to believe that every entity doing tax exempt jobs is tax exempt. There has to be a way to track sales tax paid on jobs that are tax exempt so we can file it appropriately with our end of year taxes. 
 When we run into this issue it is normally the field guys who use a credit card to purchase job specific material. When they run to a store they aren't carrying a vendor specific ST-120.1 to avoid sales tax. It's just not practical. 
 If this isn't the "typical" way then how are you handling it?

Char DeLange · Answer

Sage 100 Contractor now has the ability to add "use tax" to vendor payables that will automatically charge the same account (job materials) and then credit the sales tax payable account. or you can designate specific accounts to be affected. Look at menu 1-8 Posting accounts. But it sounds like you only want to charge the job the pretax amount and then a new contra liability account called "sales tax paid". If you use the use tax feature there is a use tax report at menu 4-1-7. Try setting it up in a play data set to make sure you get the results you want, or even the Sage Sample Co

Char DeLange · Answer

Then don't job cost the tax portion. Book it to prepaid sales tax and deducted it when you file

Sage Construction & Real Estate

Tracking sales tax paid for tax exempt jobs

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