Hi, The title of my question
(i.e.Track sales taxes on purchases from vendors)
is already posted and Answered in below link:
- BUT its for QuickBooks Desktop.
May any expert(s) explain the execution steps (in detail) for the same query for QuickBooks Online? As I am not finding certain option(s) - e.g. there is no RECALCULATE button on BILL form as mentioned in referenced post against QB Desktop.
Also note that we have both scenarios
i.e. we have to pay total of the net amount and provincial sales tax amount to supplier and also have to pay federal tax amount to respective tax agency (not to supplier). Means there are three types of amounts in the physical invoice we receive form supplier (net amount + prov. tax + fed. tax).
Hi there, abr_ora.
The Recalculate button when creating a bill is unavailable in QuickBooks Online (QBO) version. You'll need to enter the sales tax amount in the Amount column since this will be calculated manually.
Then you can refer to my previous post on how to track sales tax on purchases as a liability (to be paid later): https://community.intuit.com/replies/3901454.
For calculating sales tax collected on purchases, just refer to my previous post for the detailed steps: https://community.intuit.com/replies/3901395.
I'll share your product suggestion to our engineers regarding the Recalculate button when creating a bill.
Just leave a comment below if you need anything else in QuickBooks Online. I'm here to help.
Please note that I have successfully created a supplier bill with sales tax collected on purchases.
I also have created a bill (where supplier is tax agency) by manually entering the respective tax amount. Now I can see the Current Tax Liability account which has been accrued by going to the Chart of Accounts. It's in negative.
Now guide that how I will pay this tax amount/liability and how I will knock off the 'Current Tax Liability' account?
Further, I am new in QBO, so please also guide that how I may attache doc/screen shots etc. This will make easy to let you understand - what I have done
Hello there, abr_ora.
You'll need to record the payment by creating a journal entry. Then, reach out to your accountant on what posting account you'll need to use to offset the negative amount in the Current Tax Liability account.
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We appreciate you providing the screenshots, abr_ora.
The steps you've done with creating a custom tax, tracking sales tax and calculating sales tax collected on purchases are correct. However, it would be best to consult your accountant on what posting account you'll need to use when creating a journal entry to offset the negative amount in the Current Tax Liability account.
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