Sales Tax Reclaimable

[KPegram]

Why does my Sales Tax Reclaimable show a negative amount and what I need to do to fix it? I had a negative amount, posted the amount of the check I received from the State and my negative amount increased. Thanks!
Ex: April bal. -347.99
check from state 446.95
May bal. -794.94

[JohnDMeyers]

Are you saying that it is negative in PowerChurch or on some document that you received?

[KPegram]

Oh sorry! The negative amount is on the PowerChurch Balance Sheet, Other Assets, Sales Tax Reclaimable. Thanks,

[JohnDMeyers]

So, you are using an asset account when you receive money, apparently.

When you receive a check, is this what you are doing?
DB 01-1110-000 checking
CR 01-1810-000 other asset

If you Credit an Asset account, the value will be negative.

It should be set up like this:
DB 01-1110-000 checking
CR 01-4150-000 sales tax reclaim

[KPegram]

Yes when I receive the refund check I DB 1110-checking and CR the 1905-Sales Tax Reclaimable.

So, I should set up my NC Sales Tax Reclaimable as an income account?

When I pay to the vendor how to I post the sales tax to be reclaimed? Currently I am:
01-1110 checking CR 143.25
01-1905 Sales Tax Reclaimable DB 9.05
01-6390 Student Min DB 134.20

Thanks for helping the non-accountant do accounting!

[KPegram]

Oh thanks, I see you responded at my other post. Thanks,