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Established Member

Entering Receipts from web sales and recording sales tax

I utilize an online web store where the software provider collects payments for me, inclusive of sales tax, and then weekly deposits the proceeds, less credit card and processing fees, directly into my bank account.

 

How do I properly set up my chart of accounts to account for the following for each deposit:

 

Gross Sales (Total Collected *inclusive of sales tax collected)

Minus: Processing Fees

Minus: Credit Card Fees

Net Revenue

 

Included in the Gross Sales, are the Sales Taxes charged. I need to manually look at all of the sales tied to the deposit to determine what the total sales tax amount is so it can be properly recorded.

 

I am having a heck f time figuring out my quarterly state sales tax because of web sales.

1 Comment
Established Community Backer ***

Re: Entering Receipts from web sales and recording sales tax

the total sales received is retail price + sales tax, so you need to pull out sales tax

add one to the sales tax rate, ie if sales tax is 8.25%, then you get 1.0825

divide the total amount received by 1.0825 to get the retail price, then enter that as total sales and let QB do the sales tax calculation