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USE tax on sales based on cost of goods

My state requires that any item that I sell that is "attached to real property" is not taxed to the customer, but I have to pay the tax on my cost of the item.  When creating the invoice I select "use tax" (that I created) as the line item code, but I cannot get a report that gives me the cost of items that I sold for the period needed.

I thought I had it in generating on an Item profitability report - but as soon as I select "Sales tax code" of use - the cost of item changes to $.00.  HELP!

1 Comment
QuickBooks Team

Re: USE tax on sales based on cost of goods

Hello there, Rsb.


I'm glad to have you here in the Community. Let me help get the report that will show the cost of items that sold for a specific period.


When you track a Use Tax for an item QuickBooks Desktop, you'll need to use it to a Purchase Order and then apply it to a Bill.


Once done, you can run the Transaction Detail report for each Use Tax time period.

  1. Go to the Reports menu.
  2. Click Accountant & Taxes.
  3. Choose Transaction Detail by Account.
  4. Click Customize Report.
  5. On to the Filters tab, select Account from the Filters list.
  6. From the Account drop-down, choose Multiple Accounts.
  7. Select the appropriate payments accounts (this will limit the report to payments made to vendors) then click OK.
  8. Go back to the Filters list and select Vendor Type. From the Vendor Type drop-down, select Outstate then click OK.

To learn more about the process of tracking usage tax in QuickBooks Desktop, here's an article that you can refer to: Track Usage tax.


You may also find this article handy for future reference on everything you need to know about QuickBooks Desktop: Get QuickBooks Desktop user guides.

Please know that you can always get back to me if you have other questions about this. It's always my pleasure to help.

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