How to handle credit card deposits that includes sales tax from bank feed
Each business day I receive daily deposits from credit card swipes (from a kiosk, not from any Intuit affiliate). The local sales tax is 5%. So on a $27.00 deposit, $25.71 is revenue ($27.00 / 1.05) and $1.29 ($27.00 / 1.05 * 5%) is payable to the local taxing authority.
I am new to QB online. Previously I would provide my bookkeeper with a journal entry that sums up all the deposits for the month and have one clean entry at month end that incorporates all the transactions which are voluminous (a separate deposit for Visa / MC / Discover / AMEX).
The rules feature of QB Online is frustratingly simplistic. Percentage allocations must be between 1% and 99%. I can't have it do anything 'complex' like divide a number by 1.05 and then multiply the quotient by 5% and post it to sales tax payable.
How should I handle this? I thought maybe I could have it post to a current asset suspense account that would accumulates the deposits and then monthly clear it out but the problem is rules also don't let you reverse the signs so what it was doing was creating credit entries and keeping the debit in the checking account like it was transferred from that account when in fact it wasn't.
Is there an app that can accommodate something like this or do I have to just exclude all these and revert back to a monthly journal entry - or is there just a better approach that I'm not thinking of? I think there must be a way because thousands of other customers must have the exact same type of situation. Thank you!
Re: How to handle credit card deposits that includes sales tax from bank feed
yeah @AlexV that was my other post and there was no solution although people commented.
Quickbooks just doesn't do what I need it to do -- they should add ability to make a rule that splits a feed with high precision not just 0.01 and 99.99 -- let us live dangerously and calculate out 16 decimal places if we want to and then post the balance to another account. That would make a quickbooks online subscription worthwhile.
I would add it to a recommended features but the info I ran across is that Intuit doesn't have that feature anymore, they just steer people to this community.
I've checked your two posts here in the QuickBooks Community, and it seems like our Established Community Backer Rustler and john-pero provided you the workaround about adding sales tax on the bank feeds rule in QuickBooks Online (QBO).
I understand how the option you're looking for would be beneficial to your business. Finding new ways to adapt to our customers’ needs is how QuickBooks gets even better. I'll make sure to take note of this and will inform you through this thread once we receive product enhancement update about the availability of this feature.
In the meantime, I'd suggest visiting our QuickBooks Online Blog regularly. This way you'll be updated with the latest news and updates including product improvements.
For additional reference, you may wan to check these articles: