Dynamics Community Forum Thread Details

How to: Fixed Assets with Use Tax

We purchased some computers over the internet, no sales tax was charged or paid. I now need to enter the computers as fixed asset and pay Use tax on them. Trying to figure out the best way to do this. Obviously I want to include the tax in the total cost of the items and yet still be able to have a way to just pay the use tax due.

There are several computers and I want to enter each as a separate FA with the tax proportioned to just this one item.

I tried playing around in a test environment using POP with separate line items for each computer. I can have the use tax calculated correctly via a use tax schedule but then the tax is not included in the cost of the items and the tax schedule details have the tax going to a use tax expense account. I would then pay just the tax portion using the credit card method with a credit card setup with the vendor as the Dept. of Revenue and the AP account on the vendor is Use Tax Payable not AP. Under this setup the use tax is accounted for as a use tax expense and as a payable to the DOR. However, it is not included in the cost of the asset. And I can not then go into the asset card and click the blue arrow next to asset cost and and add the tax portion since I already have the tax going to an expense account.

I could manually calculate the tax and enter a Payable to the Dept. of Revenue for just the Use Tax due, then manually proportion the tax to each line item computer on a POP Shipment/Invoice Receipt but I’m trying to avoid doing all this manually.

Suggestions?
Michelle

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