User Support Forum

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

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

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

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

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!

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