QB POS 19.0 Receiving Items that I paid taxes on

I've got the steps to help you receive items that you paid taxes, rcarrico.

In QuickBooks, you need to manually track sales tax on non-sales transactions like bills, checks, and purchase orders. The program is not designed to track taxes automatically on non-sales transactions.

Before proceeding, may I know how you track your items in QuickBooks? Are you using Bill or Purchase Order? 

To track the taxes on your items, I'd recommend creating an Expense account. I'll show you how:

1. From the Company menu, click Chart of Accounts.
2. In the Chart of Accounts window, right-click anywhere and click New.
3. In the Choose Account Type window, select Expense and then click Continue.
4. Enter the Account Name and other details.
5. Once done, click on Save & Close.

Once done, follow the steps below to track the sales tax:

1. When creating a transaction (like a bill) in which you will be tracking sales tax, enter the bill as usual but go to the Expenses tab instead and select the expense account created in step 1.
2. On this line, enter the amount of sales tax in the Amount column (this will need to be calculated manually).
3. Ensure that any detail in this transaction adds up to the correct total after clicking Recalculate.

For more details, please see this article: Track sales tax on Purchases.

I've also added this article that'll help you properly configure your sales tax in QuickBooks Desktop Point of Sale. This way, you can charge the correct amount on taxable items: Manage Taxes.

If you have additional questions in mind, feel free to leave them below. We'll make sure to get back to you.

Thank you for your help.  We are currently using a Bill system instead of Purchase Orders.  We are just getting our QB POS system up and running.

We already have a Expense account in our Chart of Accounts as Sales Tax- Purchases.  I am assuming we can use that one?

What I do not understand is how to add the sales tax to the bill/invoice.  My understanding is that we will bring in inventory thru QB POS.  So if I have to buy something from a local store to use on a job (and we pay sales tax on it) I would take my receipt and go to QB POS and 'Receive Items' and enter the items I bought, so now I have the just the cost of the items on my Voucher in QB POS.

How do I add the sales tax from the receipt to the total of my items?  From what I understand when QB POS and QB sync it will bring over my voucher from QB POS and the 'bill' will show up under the appropriate vendor in QB?  Once it does that is that when I go to the expense tab and add the sales tax?

Thank you.

Hey there, @rcarrico. 

Thanks for coming back and asking more clarifying questions to help fix the problem. 

As for the expense account question you asked, I recommend consulting with your accountant to be sure on which expense account to use directly for this. They'll be able to give you the best advice based on your business. 

With adding the sales tax, the best route would be to enter the sales tax information manually in QuickBooks Desktop after it comes over from POS. Here's a guide that can provide more details on how to do this action: 

Sales tax in QuickBooks Desktop

Feel free to come back if you have any other questions or concerns. We're always here to lend a helping hand. Take care! 

@rcarrico 

You should distribute the sales tax over the items on the receiving voucher, not list it separately.  Sales tax paid is part of an individual item's cost and should be added to your inventory value, not recorded as a separate expense.

I would like to allocate the sales tax on bill across the inventory items - how is that done?

Welcome to the Community forum, @nreynolds. I'll be glad to help you collect sales tax on bills.

You can manually track sales tax on non-sales transactions since this feature is unavailable in QuickBooks. If they won't be paid later, follow these steps:

1. Create an Expense account.
   1. Select Chart of Accounts from the Company menu.
   2. In the COA window, click the Account drop-down menu and tap New.
   3. In the Choose Account Type window, pick Expense, then click Continue.
   4. Enter the Account Name and other details, then press Save & Close.
2. When creating a bill with sales tax, enter it as usual, but go to the Expenses tab instead and pick the expense account created in step 1.
3. In the Amount column, enter the sales tax quantity, which will be calculated manually.
4. Review any detail in this transaction that adds up to the correct total after clicking Recalculate.

Here's an article you can use for sales tax on purchases as a liability (to be paid later): Track sales tax on purchases from vendors

Save this reference to learn how to troubleshoot matters or unexpected results: How to resolve common sales tax issues

This should keep you moving today. Don't hesitate to let me know if you need additional assistance. I'm always here to keep helping.