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How are you recording use tax within Acumatica?
For example, how can we get around the issue where the use tax has 1 tax expense account and sub account assigned to the tax id. You can’t edit or change this during invoice entry. For example, you purchase a service for $ 100. You should have been charges sales tax, but the vendor is out of state. Legally you have to pay use tax on this service. You need to pay the state $ 8.25 for the $ 100 service which you expensed to Repairs – HVAC. The tax was set up to use an expense account Miscellaneous Taxes, but you want this $ 8.25 to go to Repairs – HVAC. Now add in sub accounts due to several locations, and you have a royal mess.
I still don't know the tax area very well. If you're going to be at Summit in a couple of days, I recommend tracking down Annita. She knows the tax stuff really well.
@shawn-slavin would be another good one to talk to.
I haven't seen any systems that do a great job with use tax. Generally I would add another line in the distributions to record the expense and an offsetting line that posts the use tax liability to a separate tax accrual account. It leaves the original invoice amount the same, and it does link the tax accrual back to the original invoice.
Let me know your thoughts,
Dennis
Not a bad idea @dennis-easter.
Also, there is a Use Tax section in the F335 Advanced | Value-Added Taxes 6.0 Course that you might checkout. I just haven't gone through it personally because taxes give me a headache.
The Use Tax section is in Lesson 5 on page 54:
