Charging use tax on payable invoices

Use taxes are taxes that some states levy when you purchase items or services on which no tax was collected by the seller—for example, a tax on out-of-state purchases, or when there is a differential on the sales tax rate you paid and the sales tax rate that is charged in the state.

You specify use tax posting accounts in the 1-8 General Ledger Setup window. When you enter a payable invoice to which use taxes apply, you specify the ‘Use Tax’ District (like the Tax District on receivable invoices), which Sage 100 Contractor uses to calculate and display the total use tax you owe. The posted ledger transaction includes the detail for the use tax.

To record use tax on an invoice:

1. Open 4-2 Payable Invoices/Credits.
2. Create the payable invoice.

3. In the 'Use Tax' District box, select the tax district to which you owe the use tax.

   Sage 100 Contractor calculates the use tax amount for the district you enter as the default, but you can change the amount.

4. Click File > Save.