If you select the check box on the tab in the form, any sales tax that is posted in a ledger account that is used for expenditures is recorded.

ImportantFor the U.S. use tax functionality to work properly, an appropriate offset account for the use taxes must be selected in the lookup field in the form.

Example of how use tax is recorded

In the form, select the check box.

You receive a hotel bill of $1000. The sales tax rate is 10%, and the sales tax is $100.

The $1000 is posted to the vendor account (credit), and the $100 sales tax is posted to the account (credit).

On the debit side, both the $1000 and the $100 sales tax are posted as expenses (costs) on the ledger account for hotel expenses. The following table shows how the amounts are posted:

Ledger account

Debit ($)

Credit ($)

Vendor account

1000

Use tax payable

100

Hotel expenses (cost)

1100

Fields that are not available when you select Apply U.S. sales tax and use tax rules

If you select the check box on the form, the following fields on other forms are not available:

  • text box on the form, in which you specify values for sales tax codes.

  • lookup field on the form.

  • lookup field on the form.

  • on the form.

  • on the form.

See Also