Reporting on Sales Tax Liability

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Rebecca Ralls

• July 28, 2016 15:41

Hi all,

 

I have a client in IL that has a sales tax report they have to fill out monthly - the report has to report ALL revenue sales for month and specify whether each transaction was taxable or non-taxable.  This particular client usually is not required to charge sales tax - except under a very specific set of circumstances. So whether a transaction is taxable or not is based on the specific circumstances of that transaction and any customer could have transactions that are potentially either taxable or non-taxable.

Has anyone else run into something similar, and if so, how did you manage it? What sort of report did you use to pull your numbers every month?

Thanks!

Rebecca

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  Rebecca Ralls

  • August 15, 2016 14:42

  Here's how I solved this: 

  Using the Declarative Lookup Rollup Summaries tool I put a field on the Billing header that counts how many billing lines have a product where the Tax Type = 'Tax Rate'. (AcctSeed__Product__r.AcctSeed__Accounting_Type__c = 'Tax Rate'). This is to determine whether tax was charged on the billing or not.

  Then on the Billing Line, I made a formula field that determines whether that particular Billing Line is taxable or not: if(AcctSeed__Billing__r.Count_of_Tax_Products__c > 0, CASE(Tax_Type__c, 'Taxable Product', 'Taxable','Tax Rate','Tax Collected','Non-Taxable'),'Non-Taxable')

  Then, using a custom report type based on transactions that pulled the taxable/non-taxable formula field on the billing line into the layout, I was able to create a report that matched the P&L revenue balance and divided out the balance into taxable and non-taxable amounts.

  
  
  

  (The top line item being charged to Vouchers Payable was for a Billing Credit Memo that a customer wanted refunded instead and the organization just selected vouchers payable as the clearing account through which to move the balance).

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  Teng Chuan Hiang

  • January 13, 2017 07:36

  Can AS handle taxes in Singapore and Indonesia? We issue invoices from Singapore and Indonesia and they have different tax policies. What are your recommendations to handle this kind of business setup using AS?

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  JeaNae Remala

  • April 03, 2018 13:16

  I recommend reaching out to Avalara to work with their software product and integrating it into Accounting Seed if you are doing business in multiple sates, jurisdictions, or countries.

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