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[mtreed]

I am confused about the Sales Tax Liability report in QB.  Does it work when using SuperManager?  A posting on 1/302007 says it doesn't yet one on 5/30/2006 says it does.  I am using SuperManager Lite.  Thanks!

[David Johns]

mtreed,

One of the postings you mentioned http://thesupermanager.com/forum/index.php?topic=333.0 is the correct answer.  Please note that there is a way to get your tax liability that is described there.

Thanks,
David

[mtreed]

I have imported 2 test orders into QB ($71.00 is taxable and $113.00 is non-taxable). 

I have set up an Item, Sales Tax with 0% Tax Rate and Tax Agency as Commonwealth of Massachusetts.  And Tax Reference, with 0% Tax Rate and no Tax Agency.

I'm not sure why, but the Sales Tax Liability report does match what the COA has for Sales Tax Payable (other current liability). 

1.  On the Sales Tax Liability report, under "Commonwealth of Massachusetts", Sales Tax is listed and Total Sales, Taxable Sales, Tax Collected and Sales Tax Payable  all appear to be accurate.

2.  Tax Reference is listed under "No Tax Vendor" and both orders show under Total Sales and Taxable Sales - Tax Collected and Sales Tax Payable is $0.00. 

3.  And there is a line "Multiple taxes from different vendors" and it is $-71.00 for Total Sales and Taxable Sales.

The "Total" seems accurate.

I'm not sure I have the accounts and items set up properly.

When I double click on the Sales Tax Payable account the register shows 3 entries; 2 for the taxable order and 1 for the non-taxable order.  The taxable order lists Vendor Commonwealth of Massachusetts with the 5% tax due and also lists the customer's name as the Vendor with $0.00.  The non-taxable order just lists that customer's name as Vendor.

Hope this makes sense.  Thanks!

[David Johns]

mtreed,

So if I understand you correctly it looks like it is working for you.  I'm not sure why it works for some and not for others, but glad to know it is working for you.

What version of QuickBooks are you using?  Perhaps that makes a difference.

Thanks,
David

[mtreed]

I am using QB Pro 2006.  So you have heard that it works for some users???

Do the entries in the Sales Tax Payable register sound correct?

[David Johns]

mtreed,

I am consulting with a QuickBooks Pro Advisor on this.  I will get back to you...

Thanks,
David

[qbsrox]

The Sales Tax Liability Report in QB's will not match - since we are basically bypassing that feature in QB's by makes Sales Tax a Line Item on the Sales Receipt instead of a typical Sales Tax item.

Basically this is working 'outside the box' - but gives us the most accurate information.  Whatever your cart is set to charge for sales tax, that number will be brought into QB's by SuperManager Lite - so there is no chance of any information getting overwritten or not matching.  The typical Sales Tax reports in QB's will not read correctly - therefore the best thing is to go to your Chart of Accounts, located your Sales Tax account, and do a Quick Report - change the dates to the range you need.  This will show you exactly how much you collected in Sales Tax from your customers.

Even if you processed orders within QB's and did not use your cart or SuperManager, the Sales Tax will hit the same liability account, so all bases are covered.

The only thing you have to do at this point - get your Gross Sales from your P&L report for the same time period, and then calculate how much was taxable sales vs. non-taxable sales.

This was the only true way of making sure SuperManager or QuickBooks didn't overwrite what you charged your customer via the cart.  Most order managers or order importers work the same way - we hit the sales tax account when taxes are charged; this only messes up the ability to use the typical reports in QB's (however special reports can be memorized).

Additionally - when you pay the sale tax - you will use a regular check; not the Sales Tax Liability check - so turn off the warning message that pops up.  The account is your Sales Tax Liability account - this reduces the amount due and updates your Balance Sheet accordingly.

If you have any questions, just let me know.
Rox