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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
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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 

Highlighted
Level 1

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

This method worked. Thank you!

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