User Support Forum

After looking at the manual and viewing a post on Sales Tax, I want to make sure I have this right.

I have set up an asset account 01-1910 "Sales Tax Paid". Pointed the "Track Sales Tax" to this item.
Now when I enter a transaction in Accounts Payable I should get
CR to 01-1110 "Checking"
DB - 01 XXXX "Expense line item"
DB -01-1910 Sales Tax Paid
When the check comes from the state I would do a Deposit and DB 01-1110 Checking and CR 01-1910 Sales Tax Paid. In the event They don't reimburse all taxes, then I would just have a negative balance in that asset account.
Is this correct?

2nd item - with credit cards - is it better to just enter the transactions as a journal entry and make the entries for the taxes manually? I post Charges as they are received and then write the check from AP when the bill comes in.

FBCMoyock wrote:After looking at the manual and viewing a post on Sales Tax, I want to make sure I have this right.

I have set up an asset account 01-1910 "Sales Tax Paid". Pointed the "Track Sales Tax" to this item.
Now when I enter a transaction in Accounts Payable I should get
CR to 01-1110 "Checking"
DB - 01 XXXX "Expense line item"
DB -01-1910 Sales Tax Paid
When the check comes from the state I would do a Deposit and DB 01-1110 Checking and CR 01-1910 Sales Tax Paid. In the event They don't reimburse all taxes, then I would just have a negative balance in that asset account.
Is this correct?

You would actually be left with a positive balance in the taxes paid account, not negative.