Explanation: The Sales Tax resource is used to collect information regarding the various sales taxes each company is responsible for collecting, reporting and reimbursing to the appropriate Sales Tax Vendors.
You will need a Vendor and General Ledger for each sales tax liability before setting up the Sales Tax Resource.
Once this is complete, when you enter an order or invoice and use this sales tax resource, the program will automatically update your liability, so when you get to check writing, it is a simple process. Steps 1 through 3 are a one-time setup process. Step 4 is the Checkwriting procedure.
1. Set up a General Ledger:
You will need a Vendor and General Ledger for each sales tax liability before setting up the Sales Tax Resource.
Once this is complete, when you enter an order or invoice and use this sales tax resource, the program will automatically update your liability, so when you get to check writing, it is a simple process. Steps 1 through 3 are a one-time setup process. Step 4 is the Checkwriting procedure.
1. Set up a General Ledger:
If you are using ASI Computer System’s numbering system for general edgers, the Sales Tax Payable general ledger is 228. We would suggest you set up the sales tax general ledger account as a sub-account of this general ledger.
2. Set up a Vendor:
Setup code, name, and address appropriate to your tax liability.
3. Set up a Sales Tax Resource:
Use the general ledger and vendor set up in steps 1 & 2 for your Sales Tax Resource.
Each Sales Tax resource should be included in applicable Customer Resources. It will then automatically populate in New Orders/Invoice. You can also enter this resource during New Order/Invoice.
An Exempt code should also be setup for each state you charge sales in, and an out of state exempt code.
4. Write the Sales Tax Payable Check.
An Exempt code should also be setup for each state you charge sales in, and an out of state exempt code.
4. Write the Sales Tax Payable Check.
Order/Invoice processing has taken care of the “New” and “Apply” portion of this bill.
You can go directly to the Vendor-Bill-Pay Option. Select the invoices you want to pay. Proceed to Vendor-Bill-Checks, to print the physical check.
You can go directly to the Vendor-Bill-Pay Option. Select the invoices you want to pay. Proceed to Vendor-Bill-Checks, to print the physical check.
In Vendor-Bill-Pay: Find and highlight the tax vendor. Check the box to “Pay by Sales Tax Filing Date” and enter the same date that you selected for the Sales Tax Filing list. Click update and the check amount will show on the check. Select the discount line if there is one.
Note 1: If you converted from another system, your Sales Tax Vendor may have defaulted to a generic name (Tax Vendor). You will then need to set up a “Pay To” Contact in this Vendor Resource before going into the Bill-Pay option.
Note 2: If you converted in the middle of the month, go back to your previous system, and get your sales tax figures. Then do Vendor-Bill-New and Vendor-Bill-Apply (to appropriate sales tax general ledger account) for that amount.
Note 3: If you pay your sales tax on-line, then enter this as a handwritten check to clear the amounts and reduce your cash account.
Note 1: If you converted from another system, your Sales Tax Vendor may have defaulted to a generic name (Tax Vendor). You will then need to set up a “Pay To” Contact in this Vendor Resource before going into the Bill-Pay option.
Note 2: If you converted in the middle of the month, go back to your previous system, and get your sales tax figures. Then do Vendor-Bill-New and Vendor-Bill-Apply (to appropriate sales tax general ledger account) for that amount.
Note 3: If you pay your sales tax on-line, then enter this as a handwritten check to clear the amounts and reduce your cash account.