Explanation: If your Sales Tax Authority allows discounts (example: paying early), you will need to create a new bill for the negative amount. You will then have a history of discounts under each tax authority. If you do not already have a general ledger account set up for Sales Tax Discounts, do this step first:
In Bill –New:
Select the proper Sales Tax Authority.
In the Reference field, indicate this is a Discount.
Input the negative amount.
Click Process.
Select the proper Sales Tax Authority.
In the Reference field, indicate this is a Discount.
Input the negative amount.
Click Process.
In Bill-Apply:
Select the proper Sales Tax Authority.
Expand “Non-Order”.
Enter Sales Tax Discount general ledger.
Enter negative amount.
Click Process.
Select the proper Sales Tax Authority.
Expand “Non-Order”.
Enter Sales Tax Discount general ledger.
Enter negative amount.
Click Process.
In Bill Pay: When it comes time to pay the sales tax, you will simply check the discount amount along with the other invoices for this tax authority.