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SALESTAX.INF

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SALESTAX.INF

 

SALES TAX

 

SETUP:

 

Step 1:

A Sales Tax liability chart of account code must be setup in

Chart of Accounts maintenance (choice 8,5,1) (the default code is

201).

 

Also the Chart of Accounts defaults (choice 8,5,3) called

"Accumulated SALES TAX payable" must also be set to the same

number (ie. 201)

 

Step 2:

The sales tax rate must be typed into the Store Information

defaults (choice 8,8 - Page 3). There is room for 3 sales taxes

along with sales tax ceilings. (for states like Tennessee)

 

Step 3:

Specific class codes are designated as taxable or NON taxable in

the Major Class codes setup (choice 8,3,1). For instance, most

services are usually NON taxable and can be designated as such in

the Major Class code setup.

 

 

COLLECTING SALES TAX:

Each time a sale is made, Shopkeeper calculates the sales tax.

Sku numbers with the letter T to the RIGHT of the EXTENDED RETAIL

price (on the sales screen) will have sales tax applied at the

rate designated in the Store Information Defaults.

 

MAKING AN ITEM NON-TAXABLE DURING A SALE

Specific item be made NON-TAXABLE by pressing CTRL-HOME after

typing in a sku number during a sale. (Press Page Down For older

verions of Shop-Pro)

 

CHANGING THE TAX RATE DURING A SALE

To change the TAX RATE on a sale if the sale is to be charged a

DIFFERENT tax rate than usual. Press Enter on a BLANK sku number

line until the question:

 

 

REPORTING SALES TAX:

 

Most sales tax forms have a section for GROSS SALES, SALES TO

OTHER BUSINESSES, RETURNS, OUT OF STATE SALES and NON-TAXABLE

SALES.

 

GROSS SALES:

A sales tax report can be generated from the Itemized Sales Tax

(choice 6,2,3). Fill in a Date range (choice 7). Select choice E

from REGULAR to read SALES TAX. Start (choice S) the Report.

SALES TO OTHER BUSINESSES:

To see the total of sales to other businesses or other Non-taxable

sales, select choice D to read NON-TAXABLE.

 

If you need to break down the non-taxable sales into different categories

you may want to fill in the DEPT code when making sales such as RES for

RESALE, or SOS for SHIPPED OUT OF STATE, etc. Make you your own codes

On the Sales tax report screen (6,2,3) you can specify what DEPT codes

to run the report for.

 

RETURNS:

Right after you select Start report, the question: Returns Only,

Exclude returns or All sales? is displayed. Select Returns Only

to get the total of returns for the time period selected.

 

OUT OF STATE SALES:

IF you have OUT OF STATE sales, and you want to know how much of

your GROSS sales were out of state and thus NON-TAXABLE, type in

YOUR STATE INITIALS IN:

 

Specific State Only:

Include or Exclude:    (for all states, ignore)

 

Choose EXCLUDE.

 

 

PAYING SALES TAX LIABILITY:

 

Checks written to pay Sales Tax Liability must be paid against the

chart of account set in Step 1 of the SETUP procedure in this

document (ie. Expense Sales tax payable checks to expense code

201). Use the Write a Check (choice 5,5,1) feature to write this

check.

 

The NEW SALES TAX COLLECTED is added to the Balance Sheet at the

end of the month or when a balance sheet is run.

 

The Jewelry Shopkeeper keeps track of Sales tax in the following

manner;

 

Assume there is NO sales tax liability. A $100 sale is made  and

$6 of tax is collected. No other sales are made that month. The

month is closed.

 

At this point, if you were to look at the Sales Tax Liability, it

will read $6.

 

A new month begins. A payment of only $4 is made to the State to

pay off sales tax. A sale for $50 is made and $3 sales tax is

collected.

 

At this point, if you were to look at the Sales Tax Liability it

would read: PREVIOUS AMOUNT OWED ($6) + NEW COLLECTIONS ($3) -

PAYMENTS MADE SALES TAX EXPENSE CODE 201 ($4) = $5. The Previous

month would read $6. The sales tax expense code IS ONLY UPDATED

when a balance sheet is run for the current month or when the

month is closed during the month end closing procedure.