A Sales Tax liability chart of account code must be setup in
Chart of Accounts maintenance (choice 8,5,1) (the default code is
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)
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)
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
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.
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)
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
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
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
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.