MKMS Help

Calculate & Remit Sales Taxes

This Help File Page was last Modified on 04/15/2012

Calculate & Remit Sales Taxes

This Help File Page was last Modified on 04/15/2012

Previous topic Next topic  

Calculate & Remit Sales Taxes

This Help File Page was last Modified on 04/15/2012

Previous topic Next topic  
The Decision - How should you Calculate & Remit Sales Taxes?
Determine whether you will Remit Sales Taxes based on sale's Invoice or the actual Receipt.
This decision must be based on the rules of your State and/or Federal Taxing Authorities.

 

Accounts Receivable module steps to Charge Sales Tax:
1.Indicate how any National and/or Local Sales Taxes are handled in User Options on the Tax tab.
2.For calculating and assessing Local Sales Taxes when their is no National Sales Tax (the US has no National Sales Tax, Canada does), create the needed Sales Tax Classes.
3.On the Subscribers Form's Accounting Info tab enter the required Sales Tax assessment information.
4.Sales are entered indicating which Detail Line Items will be assessed Sales Tax.
5.Post the Receipts for these Sales.
6.Allocate your Receipts (and by default the Sales Taxes that were paid) to the appropriate Invoice(s).

 

Reports for calculating Sales Taxes Owed:
Sales Taxes Collected Report - Used if you remit the Sales Tax on an "As Collected" basis.
Sales Taxes Invoiced Report - Used if you remit the Sales Tax on an "As Billed" basis.
Sales Tax Breakdown Report - Provides the detailed information for Taxing Authorities that have multiple Local Option Sales Tax Rates

 

Accounts Payable module steps to Remit Sales Tax:
1.Create a Vendor for all the Departments of Revenue to which you remit the tax.
2.Determine whether you will Remit Sales Taxes based on Invoices or Receipts - see The Decision above.
3.Calculate the Sales Tax that you are required to remit to each Taxing Authority using either the Sales Taxes Collected Report or Sales Taxes Invoiced Report.
4.Create Purchase Invoice(s) for the amount of Sales Tax that is due
5.Create a Payment for the Sales Tax Invoice(s).
6.Print the Checks and mail them in a timely manner, and with the required reporting documentation.