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Experienced Member

Sales tax split between GL accounts

Hi,

 

Currently on our system all sales tax (on sales and purchases) gets allocated to one sales tax account. At month end we pay the net amount over to the tax authority. 

 

I want to create two new sales tax accounts. One where sales tax on Sales will get allocated, one where tax on purchases gets allocated. And then use the 3rd one (current one) as a clearing account for payments/refunds. 

 

How do I create these new GL accounts and set them up so that sales tax posts to the correct account when an invoice is created or expense is captured?

 

 

1 Comment
Established Community Backer ***

Re: Sales tax split between GL accounts

Sales tax handling in QB is pretty easy if you allow QB to work as it wants.  You cant change most of those functions - including account settings.  If want ot have something different then you should be prepared to implement a fully manual system.  If you try to hybridize a QB+manual system I guarantee you will end up with a mess.