Sales Tax To Be Paid By Purchaser

  • Thread starter Claude S. Sutton, Jr.
  • Start date

C

Claude S. Sutton, Jr.

Sales Tax To Be Paid By Purchaser

NC has just changed the sales tax law in that purchasers of mill
machinery and similar products are to pay the 1% not to exceed $80.00
to the state. This tax is to no longer be collected by the seller.

PT has a good system for collecting sales taxes if you are the vendor,
but I can not see a good way for me to keep track of the sales tax
that I will owe as a purchaser.

When some of the products I purchase are for use in our shop in
manufacturing a product and are subject to the 1% tax, and some of the
purchases we make are subject to the full 7% sales tax and then there
are also items which are purchased for resale and are not taxable, how
do I keep that straight with PT 2003?

I know that for each purchase, I can enter the purchase price in the
proper account (steel inventory, small tools, etc.) and on an item
line below, enter the sales tax and credit it to sales tax payable.
but that means that I have to calculate it each and every time.

I have not given this much thought, I admit, and I may be overlooking
something simple, but what I want is a way to handle this that is as
easy as when I as a vendor collected the tax using the PT tax
authorities.

CSSJR
 
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C

Chad A Gross [SBS-MVP]

Not sure if this helps any . . .

We purchase virtually everything for resale, so we very rarely pay sales tax
to vendors. Like most states, we have Use Tax as well as Sales Tax. When
we take something that was originally purchased for resale and use it
internally, we invoice ourselves, 'selling' the items at cost. Our customer
record is using the 'Use Tax' tax code that we set up. We then receive
payment on the invoice using the proper expense account as the cash account.

This results in:

Invoicing ourselves at cost keeps inventory straight, and use tax is
automatically calculated.
Receiving payment of the invoice using an expense account as the cash
account, registers the transaction as an operating expense, and keeps Aged
Receivables correct.
Having the separate Use Tax tax code, Peachtree's Sales Tax Report breaks
that out separate so we can report accordingly.

I'm not sure if a similar approach would work in your situation or not . . .

--

Chad A Gross [SBS-MVP]
SBS ROCKS!
www.msmvps.com/cgross
www.mobitech.biz
 
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C

Claude S. Sutton, Jr.

Invoicing ourselves at cost keeps inventory straight, and use tax is
automatically calculated.
Receiving payment of the invoice using an expense account as the cash
account, registers the transaction as an operating expense, and keeps Aged
Receivables correct.
Having the separate Use Tax tax code, Peachtree's Sales Tax Report breaks
that out separate so we can report accordingly.

I'm not sure if a similar approach would work in your situation or not . . .

It is an idea to think about, but I would prefer to do it another way.

Thanks anyway.

CSSJR
 

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