View Full Version : Use Taxes
01-25-2002, 09:01 AM
IN COLORADO, WE HAVE TO CALCULATE AND PAY USE TAXES ON CERTAIN TYPES OF JOBS, BASED UPON THE COSTS OF MATERIALS IN AN INVOICE, AND NOT ON THE RETAIL SALE PRICE. THIS IS PART OF THE COST OF GOODS SOLD FOR THAT CUSTOMER:JOB. WE NEED TO BE ABLE TO TRACK WHICH TAXING AUTHORITY IS PAID THE USE TAX, WHICH IS DEPENDENT ON WHERE THE WORK IS DONE. I NEED TO BE ABLE TO FIGURE THE GROSS PROFIT FOR EACH CUSTOMER:JOB INCLUDING THESE TAX AMOUNTS IN THE COSTS. SO THE AMOUNT MUST BE RELATED TO BOTH COGS AND TO ACCRUED USE TAXES PAYABLE. WE HAVE ENGAGED A PRO ADVISOR, BUT HE HAS NEVER DEALT WITH THIS SCENARIO, AND SO FAR HAS NO ANSWER. IF I CANNOT SET UP QB PROPERLY TO BE IN COMPLIANCE WITH LOCAL TAXING ISSUES, I CANNOT USE IT. OUR FISCAL YEAR BEGINS MARCH 1, SO I AM QUICKLY RUNNING OUT OF TIME TO DECIDE HOW TO PROCEED.
CAN ANYONE OFFER ANY SUGGESTIONS ?
01-25-2002, 03:49 PM
I'm not sure if this helps you. Are you using QB2002? If so, when you create a new tax, it will ask you to input the name of the liability agency the tax is being paid to, which will in turn open up the new vendor box for you to enter address, etc. You can even set up a tax item that combines several of the use taxes into a single percentage.
Once you set this up, then why not try using the inventory item setup the inventory for the item, and make sure that there's a checkmark where it says sales tax or tax.
You can also set up the customer:job price level in the customer:job info box. The field is called price level. There you can set up different price levels called, 1, 2, 3 based on the percentage of the use tax. This will be useful if a customer buys the same item all the time.
I've actually given a couple of options to try out. Since, I don't know the details of the products that require the use tax (I know gas is one of them for transportation companies), again, I'm not sure if it'll at least calculate it properly on the invoice.
01-25-2002, 08:56 PM
I was just setting up the sales tax portion of QB Pro 2001 this morning for my company. The info you're looking for is covered on pp 246-265 if you happen to be using that version. It seems quite flexible to me.
I do know a QB Pro advisor that I'm sure could help you with this. If you happen to be a contractor she wrote Accounting with QuickBooks Pro. It's available at NAHB's book store www.builderbooks.com. Her web site is www.infoplusacct.com.
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