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R
rcarrico
June 27, 2022
Question

QB POS 19.0 Receiving Items that I paid taxes on

  • June 27, 2022
  • 1 reply
  • 0 views

Hello

The vast majority of the items we purchase do not have sales tax when we purchased them since we reselling them and then paying the sales tax at that time.

 

Occasionally we just have to order something or pick something up in an emergency and pay retail/tax for it, so the tax is listed on my invoice/receipt.

 

When I 'Receive Items" and go to enter the invoice, how do I account for the sales tax I paid so that my payment and invoice match?  I do not see an option in receive items for taxes like we see for freight costs or other fees.

 

Can I just 'balance' it by recording the tax as a fee?  I realize we will then be paying tax on the item twice so to speak, when we purchased it and then when we sell it, but I do not really see a way to avoid that on the few items we purchase when we are not able to buy it wholesale/tax free.

 

Thank you.

1 reply

C
CharleneMaeF
June 28, 2022

I've got the steps to help you receive items that you paid taxes, rcarrico.

 

In QuickBooks, you need to manually track sales tax on non-sales transactions like bills, checks, and purchase orders. The program is not designed to track taxes automatically on non-sales transactions.

 

Before proceeding, may I know how you track your items in QuickBooks? Are you using Bill or Purchase Order? 

 

To track the taxes on your items, I'd recommend creating an Expense account. I'll show you how:

  1. From the Company menu, click Chart of Accounts.
  2. In the Chart of Accounts window, right-click anywhere and click New.
  3. In the Choose Account Type window, select Expense and then click Continue.
  4. Enter the Account Name and other details.
  5. Once done, click on Save & Close.

 

Once done, follow the steps below to track the sales tax:

  1. When creating a transaction (like a bill) in which you will be tracking sales tax, enter the bill as usual but go to the Expenses tab instead and select the expense account created in step 1.
  2. On this line, enter the amount of sales tax in the Amount column (this will need to be calculated manually).
  3. Ensure that any detail in this transaction adds up to the correct total after clicking Recalculate.

For more details, please see this article: Track sales tax on Purchases.

 

If you have additional questions in mind, feel free to leave them below. We'll make sure to get back to you.

R
rcarricoAuthor
June 28, 2022

Thank you for your help.  We are currently using a Bill system instead of Purchase Orders.  We are just getting our QB POS system up and running.

 

We already have a Expense account in our Chart of Accounts as Sales Tax- Purchases.  I am assuming we can use that one?

 

What I do not understand is how to add the sales tax to the bill/invoice.  My understanding is that we will bring in inventory thru QB POS.  So if I have to buy something from a local store to use on a job (and we pay sales tax on it) I would take my receipt and go to QB POS and 'Receive Items' and enter the items I bought, so now I have the just the cost of the items on my Voucher in QB POS.

 

How do I add the sales tax from the receipt to the total of my items?  From what I understand when QB POS and QB sync it will bring over my voucher from QB POS and the 'bill' will show up under the appropriate vendor in QB?  Once it does that is that when I go to the expense tab and add the sales tax?

 

Thank you.

Candice C
Candice C
June 28, 2022

Hey there, @rcarrico. 

 

Thanks for coming back and asking more clarifying questions to help fix the problem. 

 

As for the expense account question you asked, I recommend consulting with your accountant to be sure on which expense account to use directly for this. They'll be able to give you the best advice based on your business. 

 

With adding the sales tax, the best route would be to enter the sales tax information manually in QuickBooks Desktop after it comes over from POS. Here's a guide that can provide more details on how to do this action: 

 

Sales tax in QuickBooks Desktop

 

Feel free to come back if you have any other questions or concerns. We're always here to lend a helping hand. Take care! 

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