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Posted by Joanne on November 25, 2007, 11:25 am
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> Joanne wrote:
>>> Joanne wrote:
>>>>
>>>>>> I suppose you could enter the use tax on the check or bill when you
>>>>>> first enter it which debits Use Tax Expense and Credits Use Tax
>>>>>> Payable for the amount due.
>>>>> Jo the above is quite practical. Because the user can identify the
>>>>> exact type of expenditure that applies to the use tax, charging that
>>>>> expense or asset with the amount of the tax would be a better choice
>>>>> than "use tax expense".
>>>> I agree. One would include it in the expense account of the item if it
>>>> were on the invoice.
>>> I have same situation as Kevin, except I have QB Pro 2005. I hoped to
>>> find a transfer receipt or some such that would track the use tax the
>>> way a sales receipt does the sales tax. I guess that isn't there.
>>>
>>> I am not sure I understand the procedure described above- Do you mean I
>>> should go back and edit the original bill to included use tax when I
>>> remove an item from inventory?
>>>
>>> That does seem impractical to me.
>>>
>>> --
>>> Phil Nelson
>>
>> And it may not record in the correct year either. What entry are you
>> making to expense something from Inventory? Put the Use Tax information
>> on that transaction.
>>
>> J
>
> None, yet. I was waiting until I found the right form. I guess you are
> saying I bill from the company to the company, adding the use tax as
> an expense, or maybe create an item for the use tax expense?
>
> --
> Phil Nelson
As Allan Martin pointed out, the Use Tax Expense should rightfully be
charged to the same account as the purchase or withdrawal from inventory
when used. But the most important part of the entry is the Liability
Account called "Use Tax Payable" which is where your periodic report will
come from when you need the information for your Sales/Use Tax Return.
J
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