Calculate Sales Tax on Receipts

[bugtusslebabe]

Will Peachtree Calculate Sales Tax on Receipts (money received on AR)instead of on sales invoices?

Thanks so much for helping me to save time! I just got the Premium version.

[bugtusslebabe]

The company is on a cash basis so I thought about creating an account called sales tax receivables and billing the tax out (1 invoice per installment payment) DR this receivable account and credit sales tax liability once the payment is made. As far as the actual sales invoice (to sell the item), I thought I would just not calculate it or post it to the ledger at that time - just sell the item with no tax. Does anyone see a problem with this?

We are in GA and we pay tax to the state when our customer makes a payment on his/her account verses paying the state the entire tax amount before we ever receive it.

I hope that makes sense. :{

Thanks for your help!

[Tasha_SWL]

I'm in Ga also. I just want to clarify for you that the Taxable/Exempt Sales Report can be run on either cash or accrual mode and is what you should be using (you are describing a cash basis). So, I'm not clear as to why you still need to do this on the receipt?

In addition to this, even if you still needed to do it on the receipt, after you've applied the invoice, go to the Apply to Sales tab and this field is available at the bottom and will add to the receipt amount (assuming you've set up your sales tax codes and authorities).