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Level 1

# SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

My SALES TAX LIABILITY doesn't seem right.. When I go to REPORT>VENDORS & PAYABLES>SALES TAX LIABILITY, I put in the dates to figure out how much SALE TAX I owe for the month. It shows Total sales, Non-Taxable Sales, Taxable Sales, Etc.....The NON TAXABLE SALES are Negative (-), i.e... Total Sales: 27,142.46, Non-Taxable: -1,136.83, Taxable Sales: 28,279.29. doesn't make sense?

Should be the opposite.... I just started using this (within the last month or so) so it is new to me.  I went back and changed all of my Discount options in ITEMS to non taxable, and clicked the YES (to change existing invoices as well) but this did not help, still shows a negative NON TAXABLE amount.

Solved

Level 15

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

Nontaxable Sales is from Credit Memos (returns) and any negative entry on Sales forms, such as your Discount.

That only affects Tax Liability if the return or negative is marked Taxable. "Nontaxable sales" is a Value, not a Tax Calculation.

"Total Sales: 27,142.46, Non-Taxable: -1,136.83, Taxable Sales: 28,279.29. doesn't make sense?"

Yes it does; work the math. If I sell you something Taxable at \$1,000 and then discount it at -\$100 NonTaxable, the Total sales = \$900 but Taxable is \$1,000.

"I went back and changed all of my Discount options in ITEMS to non taxable, and clicked the YES (to change existing invoices as well) but this did not help, still shows a negative NON TAXABLE amount."

Yes, that is what you did.

You control the Taxable selection for returns and discounts:

Selling you \$1,000 Nontaxable Labor and \$500 taxable material.
Giving you a Discount of 10% on Each:
-\$100 Nontaxable labor discount
-\$50 Taxable Materials discount

Or, not applicable to your taxing agency?

Only you know what your Tax authority states is proper for Giving discounts and how they affect taxable status.
Level 15

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

Nontaxable Sales is from Credit Memos (returns) and any negative entry on Sales forms, such as your Discount.

That only affects Tax Liability if the return or negative is marked Taxable. "Nontaxable sales" is a Value, not a Tax Calculation.

"Total Sales: 27,142.46, Non-Taxable: -1,136.83, Taxable Sales: 28,279.29. doesn't make sense?"

Yes it does; work the math. If I sell you something Taxable at \$1,000 and then discount it at -\$100 NonTaxable, the Total sales = \$900 but Taxable is \$1,000.

"I went back and changed all of my Discount options in ITEMS to non taxable, and clicked the YES (to change existing invoices as well) but this did not help, still shows a negative NON TAXABLE amount."

Yes, that is what you did.

You control the Taxable selection for returns and discounts:

Selling you \$1,000 Nontaxable Labor and \$500 taxable material.
Giving you a Discount of 10% on Each:
-\$100 Nontaxable labor discount
-\$50 Taxable Materials discount

Or, not applicable to your taxing agency?

Only you know what your Tax authority states is proper for Giving discounts and how they affect taxable status.
Level 1

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

That makes sense now.   But why did it not change the values in the SALES TAX LIABILITY section after I changed Items to NON TAXABLE?
Level 15

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

"This is was happens, I had 2 items causing the issue.....  DISCOUNT & PAYMENT. I made a payment item to keep track of payments customers made,"

You don't typically put a Payment item on the Invoice. You use Receive Payment.

"using the payment feature in the invoices doesn't show on the receipt"

You don't use Receipts, if you are using Invoices.

"when I print it out (continues to show the full invoiced amount)."

You need to Customize the templates to meet your needs. Your Invoice template needs to have the Footer fields for Total (this sale), Payments/Credit Applied (not as a line item) and Balance Due. Have you done this part?

"So I use the PAYMENT item to deduct their payments they have made and once the bill is paid off I go back through and delete them"

That is the Worst thing you can do, especially in a file with Sales Taxes. We never enter data just to delete it, and we don't Revise existing, historic, dated transactions.

"and just run a single payment for the entire invoice through the payment section."

You are making a mess of the Cash Basis reporting, with this method. I am sorry, but first, you really are doing Too Much work, and likely have better things to do than keep handling the same data over and over; that should be the first clue that the method you came up with is convoluted and likely incorrect for financial data tracking and reporting.

"Well, I unchecked the TAX section in the item and I get this message.....

Account Change
You changed the account associated with this item. All future transactions with this item will use the new account. Would you like existing transactions with this item to use the new account?
In which, I select YES. but it doesn't change anything. not even on new invoices."

All you seem to be doing is creating the chaos you are now seeing in the reporting.

Did someone train you on this? Is there someone that you can work with, to learn from?

It is like this:

You Invoice = date of the sale and this sale is unpaid and will be paid later.

Otherwise, you use Sales Receipt.

Later, you get the Payment for the invoice, one or more, over time = Receive Payment.

I don't understand all the other stuff you are doing, and you NEVER revise sales transactions after-the-fact, and the Payments items added and then deleted and then Received, is just chaotic and likely a big part of the trouble here.

Level 15

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

"But why did it not change the values in the SALES TAX LIABILITY section after I changed Items to NON TAXABLE?"

Did you confirm the transactions changed their status? I know you can reflow the data to the accounts, but I am not aware that it will change Taxable Status; I thought you had to change the existing transactions yourself.

Level 1

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

I figured out where the problem lies. I have not been able to correct it though, i did some testing last night.  This is was happens, I had 2 items causing the issue.....  DISCOUNT & PAYMENT. I made a payment item to keep track of payments customers made, using the payment feature in the invoices doesn't show on the receipt when I print it out (continues to show the full invoiced amount). So I use the PAYMENT item to deduct their payments they have made and once the bill is paid off I go back through and delete them and just run a single payment for the entire invoice through the payment section. Well, I unchecked the TAX section in the item and I get this message.....

Account Change
You changed the account associated with this item. All future transactions with this item will use the new account. Would you like existing transactions with this item to use the new account?
In which, I select YES. but it doesn't change anything. not even on new invoices.
Level 1

## SALES TAX LIABILITy Why do I have a Negative amount for NON-TAXABLE SALES? Example (something like this) TOTAL: \$27,142.26, NON TAX: -\$1,136.83, TAX Sales: \$28,279.29

I figured out where I messed up. I had the discount & payment set as a SERVICE type instead of discount/payment type account.  Why can I not change this type. I know if it was NON-INVENTORY it will let me make changes.

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