849
NUMBERS USED TO VERIFY TAX LIABILITY
- Total Taxable Revenue for the month
- Negative Tax (TAX refunds) for the month
- The Original Taxable Revenue attached to those TAX refunds - this is included in the Taxable Revenue if using Tax Refund properly
- Total Tax paid to vendors for the month
Total Taxable Revenue for the Month
(There are two main reporting options)
Sales Tax report - R. Reports, C. Income/Receivable, G. From Date To Date, T. Set Tax Report Format & Condition, Y=group by Tax Area, N=group by Customer, A=Report All Sales, P. Preview
Sales Tax Spread Sheet report - R. Reports, C. Income/Receivable, W. Format Change, J. Print Sales Tax Spread Sheet by Date
Record the total Taxable Sales: __________________________
Tax Refunds issued that Month
R. Reports, G. Parts/Labor Sales, A. Current Parts (unless you are branched and archiving closed sales then choose B. Archive Parts), A. By Line =TAX, J. From Date To Date, Yes = Closed Date, P. to preview the report
Record the total of the TAX Line Code: ______________________
The Original Taxable Revenue from the TAX refunds (if your are using the system default TAXREFUND and following the process properly the Original Taxable Revenue on the refunds was already calculated and included in the Tax Area reports and total taxable revenue figure for the month)
If you have not been following the process properly then follow the details below to figure up the original taxable revenue on Tax refunds:
Take the number of TAX negative sales (refunds) and divide it by the base Sales Tax Percentage divided by 100. Record the total of Taxable Revenue from Tax refunds-remember if there are multiple tax percentages these will have to be figured separately, then combined for a total.
Example (using 6.5% for the base tax percentage): Total Taxable Revenue from TAX refunds = $236.00 divided by .065 = $ 3630.77
Total Tax paid out to Vendors
A. Accounting
D. Chart of Accounts
Tax Liability Account
press [F8]
G GROUP, B. by transaction type
[F7] print, promtps for date, enter date range
P transtype = Payables
C transtype = Checks
Add the Checks and Payables together: _________________
Note: do not include your Tax Payment for the prior month
MONTHLY TAX LIABILIY WORKSHEET
Total Taxable Sales for the Month ______________
(-) MINUS Taxable Revenue from Refunds -_____________
(=) EQUALS the True Taxable Revenue =
True Taxable Revenue _____________
(x) MUTIPLIED by the Tax Percentage x____________%
(=) EQUALS the Tax Liability from sales =
Tax Liability from sales _____________
(-) MINUS Tax Paid on Purchases -____________
(=) EQUALS the True Tax Liability =
The True Tax Liability amount should match the General Ledger YTD total as of the end of that month.
NOTE: Verify Tax Collected Daily
As a regular part of the Daily Work Flow the Activity Report A,H,B will show the Tax Collected for the different Tax Areas. Verify this amount at least weekly so that when it comes time to pay the numbers are correct and up to date with out any hassle of last minute clean up.
