cancel
Showing results for 
Search instead for 
Did you mean: 
ashley_l
Level 1

QBO: how to log the new NYC paper bag fee/tax

With the passing of the new law that bans plastic bags and imposes a 5 cent fee on paper bags, we recently updated our POS system to add a new "product" item called "paper bag fee" of 5 cents. However, when we try to add this item on QBO, we have to assign the product to an income COA. Ideally, we'd like to assign it to a tax liability COA.

 

Is there a way to do this without having a journal entry for each sale receipt with this bag fee to reassign from income COA to a tax liability COA?

 

Thank you!

2 Comments 2
Rustler
Level 15

QBO: how to log the new NYC paper bag fee/tax

QB uses items to direct the charges to the account of your choice

create a liability account called something like bag fees payable

create a service item called bag tax and select the bag fee payable account as the income account

 

that will accumulate the bag tax amounts without impacting on the P&L 

ashley_l
Level 1

QBO: how to log the new NYC paper bag fee/tax

This method worked. Thank you!

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up