Tracking Sales Tax

[Dave Farrington]

Good Evening, I need to start tracking sales tax as we buy item fir the church and our sports ministry. I set up the account in our main church fund (01). However, we do make purchase using the separate Sport Ministry Checking account (fund 03). My question is: When I maintain manual checks or accounts payable in fund 03 will the sales tax go to the account in fund 01? Do I need to make a separate entry for the sales tax?

We are using version 9.

Thanks Dave

[NeilZ]

Good Evening, I need to start tracking sales tax as we buy item fir the church and our sports ministry. I set up the account in our main church fund (01). However, we do make purchase using the separate Sport Ministry Checking account (fund 03). My question is: When I maintain manual checks or accounts payable in fund 03 will the sales tax go to the account in fund 01? Do I need to make a separate entry for the sales tax?

We are using version 9.

Thanks Dave

Dave,

doesn't North Carolina have an exemption from Sales Tax for purchases that go directly to support of a church ?? We do here in Viriginia, and anything we buy for the church does not get sales taxes added.

Not sure how a sports ministry figures in the equation.

[Dave Farrington]

Neil,

I have to read up on it but when my wife did the books for our last church, in NC, she had to file to get the sales tax back.

Dave

[Jeff]

In North Carolina you have to fill out a form to claim the sales tax back from the state after you pay it. In know in other states you don't have to pay it at all and sales are treated like resell sales.

You will want to add a sales tax receivable account and make sure that is in all funds. You will then setup this account in the accounting setup. After completing the setup, when putting in your invoice, a prompt will appear for the sales tax amount. It will then debit the receivable account in the same fund as the default credit account for the vendor. The end result is a three line transaction, Cr to the bank for the amount of the invoice amount, db to the receivable for the sales tax amount, db to the default expense line for the vendor check (invoice amount-sales tax)

I hope that is not too confusing.

[NeilZ]

Sure would make live easier in NC if they did it as they do in VA !!

[Dave Farrington]

Jeff,

I think I got it

Dave