Sales Tax Due Report

The Sales Tax Due Report displays taxes due for invoiced accounts receivable transactions for a time frame (Administration > Reports > Accounting > Accounts Payable > Sales Tax Due). This report can be used to tie out to the sales tax liability general ledger accounts when ran by tax authority and can be processed by line item or transaction total.

Why does the Sales Tax Due Report and Income Statement show different amounts?

We recommend using the Sales Tax Due Report tied to the Revenue Register for accurate reporting. Both Reports should tie together.

To find discrepancies also check the following:

• Check to see if posting has been initiated for the specified time frame.

• If the numbers do not match in the Sales Tax Due Vs Revenue Register, you will need to go back a month until the numbers do match. From there you can proceed forward week by week then day by day to find the transaction causing the discrepancy.

• Check the Pending Held Transactions Queue for any held postings that could be causing this discrepancy.

• Run the Sales Tax Due Report and the Revenue Register for the last month you balanced. Keep running the two reports until you find the month of the discrepancy. Hint: Search for any one transaction that matches the discrepancy amount by using the binoculars in the report to type in the dollar amount and search.

• If you cannot find anyone transaction that matches, you should continue with the following procedure:

Step by Step

1. Run both reports day by day beginning on the first day of the month that you know the discrepancy occurred in.

2. When you locate the day the discrepancy occurred in, you then review transactions posted on that day.

3. Scrutinize the “apply dates” of payments recorded in accordance with:

4. Actual payment date

5. Transaction date of the trx the payment was applied to. Specifically, you are looking for instances where someone has, perhaps, invoiced a sales order with a deposit and the invoice date is prior to the deposit date.

6. Deposit that is converted to account credit, but someone invoices and applies the credit to the invoice at a date prior to the credit memo date.

When you use the GST field on the profile tab of the bill, there is no direct relationship to a tax code/authority It is making a connection based upon the GL account used in the Accounting Defaults for GST Paid. The Sales Tax Due report uses tax codes and authorities to display/organize the tax due amounts. Since no tax code is directly applied to the bill, Evosus uses the following logic to associate the inventory invoice with a tax code/authority on the Sales Tax Due report:

1. Find the GL account that’s tied to the GST Accounting Default

2. Find the Tax Authority(ies) under Administration > Accounting > General Setup > Tax Authorities

• If there is only one authority tied to the GL account – use that authority and associated code on the Sales Tax Due report.

• If there are multiple authorities tied to the GL account – use the first one it finds in the list.
   

So, if you set up a new tax code, avoid using a GL account already in use by another Tax Code/Authority even if the new GL account will never be posted to, e.g. GNR or GST FREE.

• Accounting Period: Accounting periods are created, closed, and reopened using the Periods tab on the Accounting Setup screen.

• Tax codes: Tax Codes are made up of one or more Tax Authorities. For example, if the Washington Sales Tax is 8.5% then the Tax Authorities that make up the tax code might be Seattle tax of 6% and Washington State tax of 2.5%. This would then make up the 8.5% Washington Tax Code.

• Tax authorities: Tax authorities are the taxing agents you pay sales taxes too. Sales taxes are made up of one or more Tax Authorities.

• Report – Summary By Sales Tax: Displays Total Sales, Tax Base, Total Cost, Tax Rate and Tax Charged summarized by Tax Code, then Tax Authority and Store.

• Report – Summary By Tax Authority: Displays Total Sales, Tax Base, Total Cost, Tax Rate and Tax Charged summarized by Tax Authority and Store.

 - Report - Detail - Displays tax charged on individual invoice line items or job materials summarized by Tax Code, then Tax Authority and Store. The Report displays Transaction Number, Customer, Item, Quantity, Price, Discount, Total Sales, Tax Base, Total Cost, Tax Rate and Tax Charged.

 - Directly to Excel - Exports the line item detail information into an Excel spreadsheet and displays the following information: Transaction Type (Job Bill, AR Invoice), Post Date, Tax Code, Tax Authority, Tax Authority Rate, Tax Authority Amount, GL Code, GL Description, Comment, Store, Employee, Transaction Number, Transaction Quantity, Unit Price, Transaction Discount, Transaction Subtotal, Transaction Tax Base, Transaction Unit Cost, Transaction Total Cost, Transaction Item Description, Transaction Customer Number, Transaction Customer Name and Address.

• Do Not Display Report Filters: Option to exclude report filters from displaying on the report header.

Items that were not taxed are displayed in this section.

Inventory items are set up as exempt using the 'Apply tax if application' box on the Options tab of the Item screen (Inventory > Open an item > Options tab).

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