Posting Invoices Using Sales Tax Processing

 

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The following examples show how tax, nonrecoverable amounts, and the setting of certain options affect general ledger postings in Accounts Payable.

Expand/Collapse item  Example - Nonrecoverable Amount Allocated to Vendor's Expense Account

The following invoices were posted with the Expense to Vendor/Item check box selected in Sales Tax Code Maintenance.

 

 

Invoice Amount

1100.00

Sales Tax of 10%

100.00

Nonrecoverable of 55%

55.00

Subject to Discount

1000.00

 

G/L Account

Debit

Credit

Vendor Expense Account

1055.00

 

A/P Sales Tax Account

45.00

 

Accounts Payable Account

_______

1100.00

 

1100.00

1100.00

 

Expand/Collapse item  Example - Nonrecoverable Amount Not Allocated to Vendor's Expense Account

The following invoices were posted with the Expense to Vendor/Item check box cleared in Sales Tax Code Maintenance.

 

 

Invoice Amount

1100.00

Sales Tax of 10%

100.00

Nonrecoverable of 55%

55.00

Subject to Discount

1000.00

 

G/L Account

Debit

Credit

Vendor Expense Account

1000.00

 

Nonrecoverable Tax Account

55.00

 

A/P Sales Tax Account

45.00

 

Accounts Payable Account

_______

1100.00

 

1100.00

1100.00

 

Expand/Collapse item  Example - Posted with Use Tax

The following invoices were posted with the Use Tax check box selected for the invoice.

 

 

Invoice Amount

1000.00

Sales Tax of 10%

0.00

Nonrecoverable of 100%

0.00

Subject to Discount

1000.00

 

G/L Account

Debit

Credit

Vendor Expense Account

1000.00

 

Nonrecoverable Tax Account

100.00

 

A/P Use Tax Account

 

100.00

Accounts Payable Account

_______

1000.00

 

1100.00

1100.00

 

Expand/Collapse item  Example - Freight Amount Posted to General Ledger Expense Account

The following invoices were posted with the Expense to Vendor/Item check box selected in Sales Tax Code Maintenance and the Expense Freight Separately check box selected in Accounts Payable Options.

 

 

Invoice Amount

1125.00

Freight Amount

25.00

Sales Tax of 10%

100.00

Nonrecoverable of 55%

55.00

Subject to Discount

1000.00

 

G/L Account

Debit

Credit

Vendor Expense Account

1055.00

 

A/P Sales Tax Account

45.00

 

Freight Expense

25.00

 

Accounts Payable Account

_______

1125.00

 

1125.00

1125.00

 

Expand/Collapse item  Example - Freight Amount Not Posted to General Ledger Expense Account

The following invoices were posted with the Expense to Vendor/Item check box selected in Sales Tax Code Maintenance and the Expense Freight Separately check box cleared in Accounts Payable Options.

 

 

Invoice Amount

1125.00

Freight Amount

25.00

Sales Tax of 10%

100.00

Nonrecoverable of 55%

55.00

Subject to Discount

1000.00

 

G/L Account

Debit

Credit

Vendor Expense Account

1080.00

 

A/P Sales Tax Account

45.00

 

Accounts Payable Account

_______

1125.00

 

1125.00

1125.00

 

For more information, see:

Accounts Payable Repetitive Invoice Entry

Accounts Payable Invoice Data Entry

Manual Check and Payment Entry


 

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