We are trying to flag non-taxed out of state invoices for the CA Use Tax which is paid at the end of the year. Any help is appreciated.
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GP has a very robust tax schedule system that works for both sales and purchases and allows you to set defaults for purchases from vendors that can be changed on an invoice by invoice basis if needed. It is difficult to explain in a few lines. However, visit our web site, browse to Free Stuff->White Papers and look for the White Paper on Sales Tax (it also covers use tax). The topic is also covered in detail in our Understanding Purchase Order Processing manual.
Richard
www.AccoladePublications.com
Have you had any results in developing a method for accounting for these liabilities? We currently put the expense for the non-taxed invoices in a separate GL account and the tax is calculated from those details for reporting. Must be better way.
Hi SJPhillips,
There is the infamous 'Credit Card' method. What you do is calculate the appropriate purchases tax on the Vendor's invoice. Since you do not want to pay that amount to the vendor, you 'pay' the amount of the tax with a credit card. The credit card itself is set to the tax authority as the vendor. When the A/P transaction is posted, a liability to the tax authority is automatically created.
Check out this post, it details the steps: http://www.socius1.com/purchasing-tips-and-inventory-tricks-in-dynamics-gp/
Would this work for you?
Kind regards,
Leslie
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