Sales Tax on Purchases

Discussion in 'Peachtree Accounting' started by Claude S. Sutton, Jr, Oct 31, 2009.

  1. How can I set up a means of payment for goods purchased?

    I would like to enter the sales tax due in Purchases/Receive Inventory and have
    it show up in an account payable.

    In other words, .01(quantity) GL accolunt xxx x $100(unit price) = $1.00(amount)

    PT Complete 2005

    CSSJR
    --
    Protect your privacy. Replace Google with IXQUICK at www.ixquick.com.


    If we do not wish to lose our freedom, we must learn to tolerate our
    neighbor's right to freedom even though he might express that freedom
    in a manner we consider to be eccentric.
     
    Claude S. Sutton, Jr, Oct 31, 2009
    #1
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  2. Claude S. Sutton, Jr

    FastFazz Guest

    I would just add it to the cost of each product (along with a pro-
    rated shipping charge). This way you get the true cost of goods sold.

    The down side to this is that the "price" paid does not match up with
    your vendor's price, so if you are using the systems to generate PO's
    then they won't match up.

    The other way is to create an additional non-stock inventory item
    called sales tax (and shipping) then create an additional line item
    with those and post to a COGS account for sales tax in the same way
    freight in would be.

    Dan Fazzini Jr.
    Business Accounting, Human Resources
    Webdesign, Database Management & More
    www.sol-llc.com

    On Oct 31, 1:21 pm, "Claude S. Sutton, Jr" <>
    wrote:
    > How can I set up a means of payment for goods purchased?
    >
    > I would like to enter the sales tax due in Purchases/Receive Inventory and have
    > it show up in an account payable.
    >
    > In other words, .01(quantity) GL accolunt xxx  x $100(unit price) = $1.00(amount)
    >
    > PT Complete 2005
    >
    > CSSJR
    > --
    > Protect your privacy.  Replace Google with IXQUICK atwww.ixquick.com.
    >
    > If we do not wish to lose our freedom, we must learn to tolerate our
    > neighbor's right to freedom even though he might express that freedom
    > in a manner we consider to be eccentric.
     
    FastFazz, Nov 3, 2009
    #2
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  3. On 2009-11-03, FastFazz <> wrote:
    > I would just add it to the cost of each product (along with a pro-
    > rated shipping charge). This way you get the true cost of goods sold.
    >
    > The down side to this is that the "price" paid does not match up with
    > your vendor's price, so if you are using the systems to generate PO's
    > then they won't match up.
    >
    > The other way is to create an additional non-stock inventory item
    > called sales tax (and shipping) then create an additional line item
    > with those and post to a COGS account for sales tax in the same way
    > freight in would be.
    >
    > Dan Fazzini Jr.
    > Business Accounting, Human Resources
    > Webdesign, Database Management & More
    > www.sol-llc.com
    >
    > On Oct 31, 1:21 pm, "Claude S. Sutton, Jr" <>
    > wrote:
    >> How can I set up a means of payment for goods purchased?
    >>
    >> I would like to enter the sales tax due in Purchases/Receive Inventory and have
    >> it show up in an account payable.
    >>
    >> In other words, .01(quantity) GL accolunt xxx  x $100(unit price) = $1.00(amount)
    >>
    >> PT Complete 2005
    >>
    >> CSSJR





    Whoops!

    I hit the mail button out of habit and not the follow up button, so here it is
    again for the newsgroup.

    ===============================================================

    I appreciate the reply, but the question I have is how to record sales tax
    due that has not been billed by the vendor.

    I am in a state that now requires manufacturers to pay the
    sales tax on
    good purchased directly to the state, not to the vendor.

    In other words, those of us who have a tax number do not pay
    sales tax to
    our vendors, we instead must keep track of which purchases
    are taxable and
    pay them directly to the state.

    So far, every entry I have made on the Purchases/Received
    Inventory page
    gets added into the total at the bottom which results in it
    showing as
    money due to the vendor when I need to show it as money due
    to the state.

    CSSJR

    >



    --
    Protect your privacy. Replace Google with IXQUICK at www.ixquick.com.


    If we do not wish to lose our freedom, we must learn to tolerate our
    neighbor's right to freedom even though he might express that freedom
    in a manner we consider to be eccentric.
     
    Claude S. Sutton, Jr, Nov 3, 2009
    #3
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