Tax Discount

Question

If we pay our state sales tax early, there is a discount given by the state to the amount of sales tax we pay. How do I record that?

Char DeLange · Answer

If you enter an AP invoice, just put the discount amount in the discount field an it will credit discounts earned/taken so the net amount due is all you pay. If you post though 1-1 because you pay online, then debit sales tax payable for the full amount, credit discounts earned/taken and credit your checking account for the balance.

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