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Sales Tax Charge From Vendor

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Posted on by GS-17051342-0

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We are being charged sales tax from a vendor. I am curious as to how everyone is entering this in the purchase invoice. My first thought it to set up the tax area code and tax group code so the total excl. tax and total tax follow suit. Using this method the $5.99 is then being posted to sales tax payable. Is this correct, even though we are paying the vendor the sales tax.

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GS-17051342-0 126 on at

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Sales Tax Charge From Vendor

I haven't received a solution.
VaHiX 3,119 on at

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Sales Tax Charge From Vendor

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GS-17051342-0 126 on at

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Sales Tax Charge From Vendor

Yun Zhu - If this is being paid to the vendor it should hit Accounts Payable. In the past I would just put the total amount of the invoice as the direct unit costs. Business Central should have a field to indicate if the vendor is charging it or not. If the vendor charges it then the liability should be accounts payable. If the vendor does not charge it then the liability should be sales tax payable.
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Jun Wang 7,443 Super User 2024 Season 2 on at

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Sales Tax Charge From Vendor

You could stop BC from calculating tax if this is what you need. I would suggest you to work with a financial person to outline what you want the system to behave for certain venders like your case and experts could offer more tailored suggestions.
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YUN ZHU 74,036 Super User 2024 Season 2 on at

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Sales Tax Charge From Vendor

Hi, what account should this tax be recorded in?
If it is just for bookkeeping, you can use G/L Account.
If it is an expense and needs to be allocated to the cost, you can use Item Charge.
If this is part of the product, you can directly enter the price including tax.

Hope this helps.

Thanks.

ZHU
VaHiX 3,119 on at

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Sales Tax Charge From Vendor

Did you check this article?

https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/resolve-sales-tax-differences-purchase-orders-invoices