Sales Receipt with Sales Tax not collected from customer

Rocky2079 · ‎July 14, 2021

How do you set up a Sales Receipt to record the following?

Total Receipts - Amount received from customers for items purchased (tendering totals).

Sales Tax - Calculated on the 'T' items (not collected from customers).

This is for a Bar that sells taxable items but does not charge a separate sales tax. The Sales Tax needs to be calculated on the total taxable sales and paid to taxing authority as an expense. The daily sales activity is imported from an End of Day Z Report. The POS transactions (without a customer, Daily Sales is used) are combined into one Sales Receipt.

The accounting entries for the attached Sales Receipt example should be:

Dr. Undeposited Funds $7.00

Cr. Bar Sales $7.00

Dr. Sales Tax Expense $0.49

Cr. Sales Tax Payable $0.49

Dr. COGS $2.25

Cr. Inventory $2.25

JessT · ‎July 14, 2021

Hi Rocky2079!

Hope you're having a good day! I’m happy to share a way so your receipts can still calculate a tax without charging it to customers.

To do this, we can use a discount item to deduct the tax portion of your receipt. We will make sure to assign an expense account for that item to achieve the journals you mentioned above.

Create a discount item:

From the Lists menu, choose Item List.
Right-click anywhere and choose New.
In the TYPE dropdown list, select Discount.
Name the item as Sales Tax Discount or anything you want.
Leave the Amount of % field as 0.00.
In the Account dropdown list, select your expense account.
In the Tax Code field, select Non (Non-Taxable Sales).
Click OK.

After creating the item, add it to the last line of your sales receipt and enter the negative amount of the calculated tax.

That will do it. If you need references about the sales tax topic, you can press F1 to open the Help menu. Then, search for something like paying sales tax or just sales tax.

Let me know if you have other questions about your sales receipt. Have a good day!

View solution in original post

JessT · ‎July 14, 2021

Hi Rocky2079!

Hope you're having a good day! I’m happy to share a way so your receipts can still calculate a tax without charging it to customers.

To do this, we can use a discount item to deduct the tax portion of your receipt. We will make sure to assign an expense account for that item to achieve the journals you mentioned above.

Create a discount item:

From the Lists menu, choose Item List.
Right-click anywhere and choose New.
In the TYPE dropdown list, select Discount.
Name the item as Sales Tax Discount or anything you want.
Leave the Amount of % field as 0.00.
In the Account dropdown list, select your expense account.
In the Tax Code field, select Non (Non-Taxable Sales).
Click OK.

After creating the item, add it to the last line of your sales receipt and enter the negative amount of the calculated tax.

That will do it. If you need references about the sales tax topic, you can press F1 to open the Help menu. Then, search for something like paying sales tax or just sales tax.

Let me know if you have other questions about your sales receipt. Have a good day!

Rocky2079 · ‎July 15, 2021

Thanks Jess. I tested your suggestion and it is a workable solution. I was hoping for an automated solution, one without having to enter a new line item on the Sales Receipt. For each Sales Receipt created, is there any way to make the entry on the Sales Receipt to post a debit to Sales Tax Expense automated? The credit to Sales Tax Payable would remain as is.

Thanks again.

Maybelle_S · ‎July 15, 2021

Thanks for coming back to us, @Rocky2079.

Currently, we're unable to create an entry on the sales receipt to automatically post to the sales tax expense as a debit. We can't assign an account when creating a sales receipt. You can only change the posting account in the items.

You can visit this link for more information about creating sales receipts in QBDT: Create sales receipts.

Feel free to leave a comment below if you have other questions. I'm more than happy to help.

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Sales Receipt with Sales Tax not collected from customer