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eubankcpa
February 15, 2020
Question

Tracking materials purchases with and without sales tax

  • February 15, 2020
  • 1 reply
  • 0 views

I have a client that pays their sales tax on materials when they are delivered to the job site.

Each month some vendors charge sales tax and others do not.  At the end of the month we need to know how much was purchased during the month for which sales tax was paid and how much was purchased not paying sales tax.  The same vendor may charge sales tax on some of its invoices and may not on others, depending upon where the products were delivered.  In addition, we live in a tri-state area and need to know the materials purchased under each taxing authority’s purview.   

I am new to Quick Books On-Line and I am not proficient with its reporting capabilities. 

We use projects to track each job's cost.

Can anyone share how this (or perhaps an additional App recommendation) can be followed within the program?

1 reply

J
JamesM
February 17, 2020

Hi there, 

 

Being able to track the materials purchased under each taxing authority is an important feature which QB Online offers. I'll be happy to share more info on this so you can get back to doing what you love.

 

Based on what you've described, I recommend running the Transaction Detail by Tax Code report. This report lists all the transactions that sales tax was applied to for your specific agency, and the account to which they were posted. This can help you find mistakes, like when the transactions are posted to the wrong account. To find this report, click on Reports from the left menu > enter the report name in the search field > hit enter and adjust/filter the report accordingly. 

 

You can also check out some of these reports as well: 

 

Taxable Sales Summary - This report lists the transactions that are included in each box on the sales tax return. The report is based on accrual accounting unless you changed your sales tax reporting preference to cash basis. Most Canadian businesses use accrual accounting.

Transactions without sales tax - Transactions that don't have sales tax applied.

 

Since you're new to QB Online I'd like to welcome you to the family! Feel free to check out some of these helpful tutorials from our site: QuickBooks Online Tutorials.

 

In case you have other questions, feel free to contact our support team using this link here.

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