Use tax in Purchasing & Inventory

Good morning {@005D0000009gCUdIAM}​,

Thank you for your query.

We recommend that all Products that should incur Sales/Use Tax are marked as such with the applicable Rate Schedule, then should the Vendor not charge Tax on their Invoice, a negative/offset Rate for 'Accrued Use Tax' can be added which posts directly to the Balance Sheet 'Account' rather than flagged to 'Include Inventory' as outlined here:

Adaco: Creating a Rate and Rate Schedule

This practice will result in the Product Account being increased by the value of the expected Sales/Use Tax but the 'Accrued Use Tax' offsetting the same amount so that the net total payable to the Vendor balances to the Invoice value.

As this is a common practice in several regions, we will be amending the following Article:

Adaco: Entering Receiving Rates Rate Schedules

Keep an eye out!

Please let us know if you have further questions around this topic.

Best

David

Fourth

Good morning {@005D0000009gCUdIAM}​,

Thank you for your query.

We recommend that all Products that should incur Sales/Use Tax are marked as such with the applicable Rate Schedule, then should the Vendor not charge Tax on their Invoice, a negative/offset Rate for 'Accrued Use Tax' can be added which posts directly to the Balance Sheet 'Account' rather than flagged to 'Include Inventory' as outlined here:

Adaco: Creating a Rate and Rate Schedule

This practice will result in the Product Account being increased by the value of the expected Sales/Use Tax but the 'Accrued Use Tax' offsetting the same amount so that the net total payable to the Vendor balances to the Invoice value.

As this is a common practice in several regions, we will be amending the following Article:

Adaco: Entering Receiving Rates Rate Schedules

Keep an eye out!

Please let us know if you have further questions around this topic.

Best

David

Fourth