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Tax Configuration for Purchase Invoices

Posted on by 3,480

Hi:

Can the Tax Area Code be used within either Purchase Invoices or Sales Invoices?

Is the tax based on each state in which each vendor resides or on the state in which the end user's business resides?

When you create a purchase tax liability account in the chart of accounts for the Tax Area Code, is it a state-based liability account as opposed to a federal or local?

If the end user has vendors in many states, does this mean that a Tax Area Code will need to be created for each state?

Thanks!

John

  • Suggested answer
    KaranMehta Profile Picture
    KaranMehta 5 on at
    RE: Tax Configuration for Purchase Invoices

    Hello There,

    I'm new to this but i'd like to give a pointer - I hope that helps,

    Generally Tax Area should be created State wise - Which will give you a better clarity in reporting. (You can check the same in Cronus - This will definitely help you - Screenshot below)

    pastedimage1662181102217v1.png

    Within Tax Area -  There's Tax Jurisdiciton

    - Whereby you can create either State & County wise or State wise - It depends on how you want the data to be bifurcated. (You can Keep the Single G/L - Sales Tax Payable for all - As the bifurcation can me made easily by Tax Area)

    pastedimage1662181143056v2.png

    Click on - Select from full list - (Screenshot Below)

    pastedimage1662181187872v3.png 

    I hope this helps you. 

    Regards

    Karan

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