Sales Tax Expense vs. Sales Tax Payable

Discussion in 'Microsoft Accounting' started by Wes, Mar 29, 2010.

  1. Wes

    Wes Guest

    Hi,

    When adjusting sales tax payable with MOAP 2009, which account should be
    used as the adjustment account? I've been using Sales Tax Expense but at the
    end of the year, MOAP will only show the adjustment amounts in Sales Tax
    Expense, not all of the sales tax I paid. It seems that I need to only use
    one or the other (Sales Tax Payable or Sales Tax Expense) to account for my
    total sales tax paid.
    Sometimes I have orders where sales tax is not collected but still have to
    pay based on the item total with shipping and therefore the total sales
    amount going to my cash accounts will not include sales tax. When I get an
    order where sales tax is not collected, I put a line item in the invoice for
    sales tax, making the total include sales tax even though that is not the
    amount going to the cash account. I then make a journal entry to credit the
    cash account and debit sales tax expense for the sales tax I added in the
    invoice to make the amount of income to the cash account correct. But again,
    the Sales Tax Expense account will only show these adjustment amounts and
    Sales Tax Payable will show all other sales where sales tax was collected as
    needed.

    Hope this makes sense. If anyone has got any ideas on how to keep track of
    my sales tax where I will have one account that shows the total sales tax
    paid at the end of year and still makes it easy to keep track of paying my
    sales tax monthly.
    --
    Wes
    http://www.weswareonline.com
     
    Wes, Mar 29, 2010
    #1
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. Brablo
    Replies:
    2
    Views:
    873
    Rocinante
    Jan 22, 2007
  2. PT
    Replies:
    1
    Views:
    340
  3. Monte Sliger

    Multiple G/L Accounts For Sales Tax Payable

    Monte Sliger, Aug 22, 2006, in forum: Quickbooks
    Replies:
    3
    Views:
    993
    Golden California Girls
    Aug 23, 2006
  4. Mike20878

    Report of Accounts Payable by expense?

    Mike20878, Feb 5, 2008, in forum: Quickbooks
    Replies:
    11
    Views:
    966
    Elaine
    Feb 7, 2008
  5. SDIJOBS

    Applying Accounts payable against Travel expense

    SDIJOBS, Feb 28, 2006, in forum: Peachtree Accounting
    Replies:
    1
    Views:
    290
    tkntexas
    Feb 28, 2006
Loading...

Share This Page