Taxable Purchases

[Donna Pfeifer]

Hi Derek, thanks for your response.

I haven't paid the sales tax on the purchase yet as it was from one my 
wholesale vendors for the use of my business rather than for resale as 
is the norm. I am required to pay it when I submit the sales tax I 
collected after the end of the month. The amount for 'taxable purchases' is listed separately from sales tax 
collected on the report form so I created a separate account for it.


Would the attached image be a better way to record it? This gives me a positive balance in the Sales Tax Owed account.

Thanks!





On Friday, July 4, 2014 12:01 PM, "gnucash-user-request at gnucash.org" <gnucash-user-request at gnucash.org> wrote:
 


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Today's Topics:

   1. Re: How to setup Gnucash as a business software? (Derek Atkins)
   2. Re: Taxable Purchases (Derek Atkins)
   3. Re: New Mail Server (Stephen & Marlene Brown)
   4. Re: New Mail Server (Stephen & Marlene Brown)
   5. Using for GnuCash for multiple companies (Axel Essbaum)
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   7. Re: Re: Totals and Subtotals in Accounts view (Alberto Dante)
   8. Re: Re: Totals and Subtotals in Accounts view (Alberto Dante)
   9. Re: Re: Totals and Subtotals in Accounts view (Alberto Dante)


----------------------------------------------------------------------
Message: 2
Date: Thu, 03 Jul 2014 14:52:14 -0400
From: Derek Atkins <warlord at MIT.EDU>
To: Donna Pfeifer <donna32132 at yahoo.com>
Cc: "gnucash-user at gnucash.org" <gnucash-user at gnucash.org>
Subject: Re: Taxable Purchases
Message-ID: <sjmy4wab7hd.fsf at securerf.ihtfp.org>
Content-Type: text/plain

Donna Pfeifer <donna32132 at yahoo.com> writes:

> Is this the proper way to enter a taxable purchase? It results in a
> negative amount in the account "Sales Tax Owed" which doesn't seem
> right.

I believe that yes, it is the proper way to enter it, although I'm not
sure that this is really Sales Tax that is "Owed" -- it's Sales Tax that
you already paid out, so making the Liability negative makes sense.
It's not "money you owe to somebody else" (which is generally how I like
to think about liabilities).

When you make sales and collect sales taxes and split that into this
liability, that should increase the liability...  That is money you do
owe (to the government).

> Will it cause an issue with end of June reconciliation since I won't
> pay the sales tax until July?

It shouldn't -- just don't reconcile the transaction when you reconcile
the account.

> Thanks in advance.

> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
      warlord at MIT.EDU                        PGP key available
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