On Sunday, 21 May 2017 00:33:49 BST P M wrote: > Very basic problem here. I made an invoice for a service that I did. I > received $20. Where I live I have to charge 7% tax. So the revenue is > actually $18.69 and the tax is 1.31. My invoice has a subtotal of $18.69 > and a tax of 1.31. I post it and get it paid and for some reason my tax > expense is a -1.31. In other words my net income is boosted by $1.31 as > opposed to decreased to $1.31. Why is this? Is this because I haven't > actually paid the sales tax yet and I close it out later? >
Hi, If your sales tax works anything like VAT does here in the UK, the tax you've collected isn't an expense to you... you should record the tax portion as a liability - it isn't your money, it belongs to the government, you are just "looking after it" for them. HTH, Maf. _______________________________________________ gnucash-user mailing list [email protected] https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
