:headdesk: :headdesk: :headdesk: I already know what the accountant will say; as per IRS regulations the taxes should be included in the cost to me of the goods (assuming that they're for business consumption/use and not for resale). What I'm asking help for is HOW TO MAKE GNUCASH DO THIS if it isn't a simple line-item purchase, such as the two examples of an out-of-state purchase with sales tax paid later in a quarterly filing or a vendor bill including taxable items which will later be covered by a processed payment.
Am I still being unclear?----Eric. On 12/27/20 11:00 AM, [email protected] wrote: > Message: 6 > Date: Sun, 27 Dec 2020 10:14:31 -0600 > From: Les <[email protected]> > To: [email protected] > Subject: Re: [GNC] Sales Taxes... > Message-ID: <[email protected]> > Content-Type: text/plain; charset=utf-8; format=flowed > > I suggest you involve your accountant on this subject. > > On 12/27/20 9:41 AM, Eric H. Bowen via gnucash-user wrote: >> See, they /shouldn't /be (accounted separately), but in case 2 (taxes >> paid separately to state at end of quarter) and case 3 (entered as a >> vendor bill) there doesn't appear to be a simple way to redirect the >> taxes to the cost of supplies. Unless I'm missing it. >> Suggestions?----Eric. >> >> On 12/27/2020 6:45 AM, Greg Feneis wrote: >>> All of these examples appear to be supplies for the business to use >>> (vs items purchased for selling). Why would the cost of the taxes >>> paid need to be account for separately from the cost of the items? >>> >>> Kind regards, Greg Feneis >>> (Pixel 3) >>> >>> On Sat, Dec 26, 2020, 16:52 Eric H. Bowen via gnucash-user >>> <[email protected] <mailto:[email protected]>> wrote: >>> >>> ??? Okay. With year-end coming up I'm not looking to make major >>> changes in >>> ??? the past, but I'd like to account for everything properly in the >>> ??? future. >>> >>> ??? Say I purchase $100 in printing supplies (paper, ink, etc.) from a >>> ??? local >>> ??? vendor. The IRS wants me to account for taxes in the value of items >>> ??? purchased. So I add an entry for $108.25 (8.25% local tax), and >>> ??? the full >>> ??? value goes into my "Expenses:Business Expenses:Office Supplies" >>> ??? account. >>> ??? Fine. >>> >>> ??? Now, suppose I purchase that $100 in supplies from an out-of-state >>> ??? vendor who falls under the threshold for reporting sales taxes to >>> ??? Texas >>> ??? (rhyming couplet there?) and so does not charge me sales tax on the >>> ??? purchase. The law says that I have to pay a sales/use tax on the >>> ??? purchase anyhow. Fine, I have a liability account set up for "Sales >>> ??? Taxes Payable" which I normally use for the sales I make to >>> customers; >>> ??? once a quarter I total this up and send a check in to the >>> comptroller. >>> ??? No problem at all to do so with my online purchase, but the $8.25 >>> ??? which >>> ??? I pay at the end of the quarter doesn't get added to my Office >>> ??? Supplies >>> ??? purchase, as it should. >>> >>> ??? Finally, suppose I purchase the supplies from a local vendor, who >>> ??? charges tax, but who grants me a "Net 30" for payment and so it goes >>> ??? into my Accounts Payable as a bill. If I use the "Sales Tax Payable" >>> ??? account/tax table for the purchase, my payment for the purchase >>> ??? goes in >>> ??? as a payment on the liability, which is wrong. I can use a separate >>> ??? sales tax table tied to a different account for purchases, in >>> ??? which case >>> ??? it will be recorded as "Expenses:Business Expenses:Business >>> ??? Taxes:Sales >>> ??? Tax Paid", but ideally the $8.25 should have been added to the >>> ??? value of >>> ??? the purchase in "Office Supplies." >>> >>> ??? Is there a quick and elegant solution to this issue which I'm >>> ??? overlooking, but that I could implement for next year? >>> >>> ??? -- >>> ??? --------Eric H. Bowen >>> ??? [email protected] <mailto:[email protected]> >>> ??? <mailto:[email protected] <mailto:[email protected]>> >>> ??? _______________________________________________ >>> ??? gnucash-user mailing list >>> ??? [email protected] <mailto:[email protected]> >>> ??? To update your subscription preferences or to unsubscribe: >>> ??? https://lists.gnucash.org/mailman/listinfo/gnucash-user >>> <https://lists.gnucash.org/mailman/listinfo/gnucash-user> >>> ??? If you are using Nabble or Gmane, please see >>> ??? https://wiki.gnucash.org/wiki/Mailing_Lists >>> ??? <https://wiki.gnucash.org/wiki/Mailing_Lists> for more information. >>> ??? ----- >>> ??? Please remember to CC this list on all your replies. >>> ??? You can do this by using Reply-To-List or Reply-All. >>> >> _______________________________________________ >> gnucash-user mailing list >> [email protected] >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> If you are using Nabble or Gmane, please see >> https://wiki.gnucash.org/wiki/Mailing_Lists for more information. >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
