Tip of the week from Brenda Hopkins – Week 10

Track Use Tax in Payables or P.O.’s

If you are not charged sales tax by a vendor and need to self-remit use tax for a P.O. use these steps:

Let the system calculate Sales Tax.
Offset the tax amount in the Trade Discount field.

Point the trade discount Amount to an accrued use tax account.
Point the sales tax Amount to the appropriate expense or tax account.
The Vendor gets paid properly because of the credit and tax gets recorded.

Use SmartLists to track and report use tax data for later remittance [Company > Tax Detail]