Modules»Accounts Receivable»Sales Tax Reporting and Auditi…
  • RSS Feed

Last modified on 1/28/2016 3:45 PM by User.

Sales Tax Reporting and Auditing

This is used when you report just a state sales tax….no county, city, etc. tax.  For example:

 

  • State Tax – use this if only a state tax is used.  The example would be the state of Michigan charges 6% sales tax, but no other City, County or Parish tax.  The State of Michigan would be setup as 6% in the Sales Tax Rate table (found in 6/32/17/2).  No other tax is reported.
  • State Tax – may also be used if sales tax is collected for another state.  The example is if the selling location is in Michigan, but the goods are delivered to Ohio and a Ohio sales tax is charged, collected and reported. Ohio would be setup as a State tax.  

 

Step 1: Print                                      

A/R - SALES TAX SUMMARY REPORT - NO DETAIL     (SHSTAX)

  • Accounts Receivable (Module 2)
    • Sales Analysis (Task 10)
      • Sales Tax Summary (Sub-task 10)

 

Note:  in the customer number selection, do not use intercompany customer numbers.

 

======================================================

 

ISSUES:

 

  • If the TOTAL TAXABLE column on the Sales Tax Summary Report multiplied by the state tax rate, does not roughly equal the amount in the STATE TAX column (because of "rounding" the amount may not be exact, but it should be within a few dollars):
    • Look at each day on the report and determine which day(s) is off.  i.e. The TOTAL TAXABLE column is $10,000, the state tax rate is 6% , however the STATE TAX column is $700, instead of the expected $600.  Look at every day on the report and multiply the amount in the TOTAL TAXABLE column by the state tax rate and determine which day is off.
    • Run a DETAILED (go to A/R module, Sales Analysis - Task 10, Sales Tax Summary with Optional Detail - Sub-task 11) report for each day that does not tie out.  Was something taxed, even though the customer/item was non-taxable? Determine the problem.
  • Another reason for not balancing or tying out the reports can be because of an item such as Intercompany Sales, Employee Advances or Trade-ins.  If so these items need to be added to the Total Taxable, Total Nontaxable, Total Exempt columns.