Add sales tax to PO already created

Hi there, @Kim Perico.

Thanks for reaching out to the Community. I’m here to provide some insight regarding your question about adding sales tax to a purchase order in QuickBooks Desktop. 

I manage to replicate this on my end, and I am unable to add sales tax to a purchase order. From further research, I found out that QuickBooks isn’t designed to track sales tax automatically on non-sales transactions. You need to manually track it on bills, checks and purchase orders.

For more information, please check out this article: Track sales tax on purchases from vendors.

I can see how important it is for you to add sales tax to PO transactions. I’m going to submit feedback from my side to reinforce your request. 

I’d also suggest doing the same by following the steps below:
1.    Go to the Help menu and select Send Feedback Online.
2.    Select Product Suggestion.
3.    On the QuickBooks Feedback window, fill out onscreen instructions.
4.    Click Send Feedback.

These requests and suggestions are forwarded directly to the Product Development Team for consideration in future updates. They let them know what feature works best for you as a QuickBooks user.

That should do it. Please let me know if there’s anything else you need, I want to ensure your success. Thanks for dropping by and take care!

Hi @KhimG,

Thank you for the response.  I appreciate the feedback.  I modified the rate on each line on the PO to include the sales tax since it's a cost of the product.  Now that I'm thinking about it, I was confusing the sales tax on a PO with an Invoice that I had created.  I'm new to QB so everything takes some time.

I will definitely submit the feedback as noted below.

Thanks again!

Thanks for getting back on this thread, @Kim Perico.

You’re always welcome. I’m glad you were able to add the sales tax by manually modifying the rate on each line item.

Please send the feedback to our Developers so they will know what works best for you.

If you need anything else, please let me know. I'm more than happy to help. Wishing you and your business continued success!

I have a vendor that charges sales tax as I am a designer who pays the vendor up front for the sales tax. For instance, a fabric company charges me for the product, shipping and sales tax. The client only pays me for services and reimburses me for the cost of the fabrice.. There is no place to put the sales tax amount in the PO. How do I input that?

Thank you!

Hey there, @queenofshades.

Welcome and thanks for joining this conversation. Allow me to chime in for a moment and share some insights about adding sales tax to purchase order (PO) in QuickBooks Desktop (QBDT).

As mentioned by my colleague above, QBDT is not designed to track sales tax automatically on non-sales transactions. You need to manually calculate and enter the sales tax in the Amount column when creating PO.

There are two ways to do this. First is track sales tax on purchases as an expense (not to be paid later). Here's how:

1. Create an Expense account (if you haven't yet).

• Go to the Company menu at the top and pick Chart of Accounts on the drop-down.
• In the Chart of Accounts window, right-click anywhere and click New.
• Choose Expense on the Choose Account Type, then Continue.
• Enter the necessary information, then Save & Close.

2. Once done, go to the Vendors menu at the top and pick Create Purchase Orders on the drop-down.
3. Enter the amount of sales tax in the Amount column (this will need to be calculated manually), then Save & Close.

The other one is to track it on purchases as a liability (to be paid later). Here's how:

1. Create an Other Liability Account if you haven't yet as well. You can use the same steps above from step 1 - 3. Just make sure to choose Other Account Types and Other Current Liability in the Choose Account Type window.

2. When it is time to pay this sales tax, you can see the liability that has been accrued by looking at the Chart of Accounts. This amount can be paid with a regular check.

You can also check out this article for further guidance: Track sales tax on purchases from vendors.

That should do it. Please let me know how it goes in the comment section below. I'm always here if you have any other questions. Wishing you all the best!