Level 15

Taxes

@lauraamello

"However, in CA, they ask you to deduct the amount of the actual sale (that you paid taxes on) from the gross sales on your return."

Set up an Item for this; make an Other Charge type item linked to a COGS account and name this item "Sales Taxes Incurred." Now, on the purchase for anything where you paid sales taxes inbound, use this item listing Quantity as the decimal tax rate and Cost as the Gross Price that was taxed. Let's use Rustler's example:

Fabric item (two sided, if you buy and sell it) $5,000
Sales Tax Incurred item $5,000 Cost @ .07 = $350.

Now you can report on that Item, seeing Cost and Tax (as Quantity) for purchase reporting.