how to cap sales tax on purchases over a certain dollar amount.

Discussion in 'Microsoft Accounting' started by dav, Sep 11, 2007.

  1. dav

    dav Guest

    How do I cap sales tax on purchases over a certain dollar amount.

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    http://www.microsoft.com/office/com...-4f3dc217fbcd&dg=microsoft.public.sba.general
     
    dav, Sep 11, 2007
    #1
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  2. dav

    Lance [MSFT] Guest

    Tax codes don't have a max limit setting, but you can add or subtract taxes
    from the invoice using a tax line in order to subtract off any excess tax
    over your area's limit.

    Example case:
    Suppose my city taxes sales at 2% of the first $1000 of any one sale, and no
    tax needs to be collected for the portion in excess of $100.

    I make a $1200 sale. The program sets the tax to .02 * $1200 = $24 but it
    should be only .02 * $1000 = $20. So I need to reduce the tax by $4

    To fix it, I add another line on the invoice. In the line type column (the
    one with the little item picture) I pick sales tax. In the item column I
    pick the city tax code. In the quantity column I pick -1, which means the
    line will be subtracted from the invoice. In the unit price column I pick
    $4, which is the amount of the excess tax. In the description column I enter
    something like 'No city sales tax due on amounts of $1000) When I save the
    invoice $4 will be subtracted from the taxes due to my city, resulting in an
    invoice with the correct tax amount.


    This posting is provided "AS IS" with no warranties, and confers no rights.
     
    Lance [MSFT], Sep 24, 2007
    #2
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