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Level 1

Enterprise Solutions Invoicing Capital Improvements

We have a client who has been grandfathered in with NYS Sales Tax not to have to pay sales tax on any material purchase - no matter what type of sale they will use it on. 

They need to capture the Use tax for the materials they have purchased when they are used in a Capital Improvement project.  Currently they are marking their Invoice as taxable - which is incorrect and also has them collecting sales tax on that sales price of the materials, not the cost.  Any suggestions how to handle better in QuickBooks?

1 Comment
QuickBooks Team

Enterprise Solutions Invoicing Capital Improvements

I can share some information so you can handle it properly, @Val.

 

You’ll want to make sure you’re using the Inventory item feature in order for the Cost to show up when the material is sold. Turning this on in the program lets you track everything related to the items.

 

If it should not be taxable, you can select (Non) Non-Taxable Sales under Tax from the invoice page. Here’s how:

 

  1. Go to the Customers menu.
  2. Select Create Invoice.
  3. Enter the necessary details.
  4. Select Non.


 

You might want to visit this article about inventory accounting. This provides in depth understanding of how to manage certain stages to ensure an accurate representation.

 

Get back to me here if you need further assistance with your entires. I’ll be here to help anytime. Have a good day.

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