Sales Tax Payable


D

Dimitry

I wonder how people dealt with this problem?

I would buy a product from a store such as Staples and then resell it to a
customer. Staples would charge me a sales tax and then I would charge the
customer a sales tax. In quickbooks I had a Sales tax payable account and
would deduct from it the sales tax that Staples charged me. This way when I
pay my sales tax, it would automatically deduct the amount of tax I already
paid for the product and I would not have to manually calculate it. Is there
a way I can do that in SBA?

Thanks
-Dimitry
 
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A

Allan Martin

Dimitry said:
I wonder how people dealt with this problem?

I would buy a product from a store such as Staples and then resell it to a
customer. Staples would charge me a sales tax and then I would charge the
customer a sales tax. In quickbooks I had a Sales tax payable account and
would deduct from it the sales tax that Staples charged me. This way when
I
pay my sales tax, it would automatically deduct the amount of tax I
already
paid for the product and I would not have to manually calculate it. Is
there
a way I can do that in SBA?
Have a talk with your accountant.
 
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K

Krishna Reddy M

Hi Dimitry,

You can create two accounts one for Tax payments and Tax collected. Use
the Tax Payments account when ever you purchased some items. Add this account
as a line item and enter the tax you payed in this account.
At the ed of the month or when ever you want to pay the tax check the total
amount in the Tax collected account. note the amount.

Go to Company menu, click on Sales Tax then Adjust Sales tax due link in
the menu.

You will get "Adjust Sales Tax" Dialog.

Select the Tax Collected account in "Tax income or expense" and Tax payment
account in "Tax Code to adjust" field.
Select the "Decrease" in adjustment
Enter the Tax collected amount which you noted down previously in Amount
field.
Click on Ok button.

Open the Sales Tax Liblity report in reports menu. You can see how much more
you collected and the amount you have to pay.
 

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