If I set BC to Sales Tax and then set an invoice in accounts payable to tax liable and enter a taxable item, BC will post a debit to the sales tax payable GL account. This is incorrect. This reduces the balance of the payable account. Maybe this is what you'd want if you are paying VAT, but I need Sales Tax. When I mark an invoice as tax liable it should credit the sales tax payable GL code because I need to pay more tax. How can I get Business Central to calculate sales tax and not VAT? Additionally, how can I indicate that the vendor has collected the tax? I'm pulling the tax amount off of the invoice via OCR. Right now I have that line set to validate the tax. If I set the tax group to Expense/Capitalize the tax it doesn't add the tax to any GL code.
To sum up.
Where should I enter sales tax collected by a vendor?
When we owe sales tax on an invoice we need to pay, how can I get BC to add the tax to a payable GL?
