March 2014 / PhreeBooksR36RC3
Author – Charles

This page is incomplete

Disclaimer – Sales Tax is a complicated area of taxation and you need to consult with your Accountant to ensure it’s correct application. You use anything on this page at your own risk. The author cannot vouch for the accuracy and reliability of the information contained in these web-pages. This information should not be relied upon as a substitute for formal advice from your Accountant. Neither PhreeBooks or the author will be responsible for any loss, however arising, from the use of, or reliance on any information contained in these website pages.

Sales Tax in PhreeBooks:

The set-up of any Sales Tax(es) in PhreeBooks will depend on the make up of Sales Tax(es) being reported. Some general guidelines:

NO. OF ‘TAX AUTHORITIES’ ONE TAX-RATE & TYPE MULTIPLE TAX-RATES OR TYPES
1x Tax Authority
Report Sales Tax
1x GL Account – Current Liabilities
GL Account balance
1x GL Account – Current Liabilities
PhreeForm Report of all Rates & Types
1x Tax Authority
Sales Tax
Purchase Tax
Report Net Tax
1x GL Account – Current Liabilities
1x GL Account – Current Assets
GL Account balances
1x GL Account – Current Liabilities
1x GL Account – Current Assets
2x PhreeForm Reports – Rates & Types
1x Tax Authority
Sales Tax
Purchase Tax
Report Separately
1x GL Account – Current Liabilities
1x GL Account – Current Assets
GL Account balances
Multiple GL Accounts – Current Liabilities
Multiple GL Accounts – Current Assets
GL Account balances
Multiple Tax Authorities Multiple instances of above Multiple instances of above

The slight downside of the ‘Multiple GL Accounts‘ (asset and liability) set-up (third example) is all the multiple GL Accounts for just the one Tax Authority and the inability to create one (or two) summary ‘Sales Tax Report’ in PhreeForm.

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