EBMS includes a step by step payment wizard to pay sales tax that has been collected from customers and use tax for consumed items. The tools included with EBMS are convenient ways to calculate the tax payable, the taxable totals, and the gross total required by most state tax agencies.
These tools can be used in connection with the optional TaxJar SmartCalc sales tax calculation tool. This section can be ignored if the TaxJar > AutoFile tool is used to pay sales taxes.
Complete the following steps to create a vendor to pay sales tax:
Create a tax agency vendor. See [Financials] Vendors > Adding a New Vendor of the main documentation for more details on creating a new vendor.
Click on the terms tab of the vendor
and set the proper terms.
Set the discount terms to the proper percentage if the tax agency gives the tax collector a percentage for the collection costs. The Discount and Due settings shown above are the appropriate settings if the state gives a 1% discount and the payment due date is the 20th of the month.
Set the proper terms so the sales tax is paid by the due date.
Click on the Advanced tab to set
the Vendor Discounts financial account.
This account should be a miscellaneous revenue account. Review [Financials] Chart of Accounts > Adding General Ledger Accounts for instruction to create a new revenue account.
Save this vendor by clicking OK.
Complete the following steps to configure the tax agency, generate an expense invoice, and pay the tax liability.
Verify that all tax rate tables contain the proper
tax agency vendor ID. Repeat for all sales tax rate tables that
are paid to the specific tax agency. This step must be completed before
launching the Pay Sales Tax
Launch the Pay Sales
Tax wizard by selecting from the main EBMS menu. Note
that this wizard will include applicable sales and use taxes.
Select each Tax Agency that is to be paid by clicking on the Select column.
Click the Calculate
button to open the following Unpaid
Sales Tax list:
Review the tax values for each Tax
Table associated with the selected Tax
Agency. Click Next
to open the following dialog:
Enter any necessary Penalty fees.
Click Print to print the Sales Tax Detail report. Review the report documentation section below for details.
Click View to add any discount to the invoice as shown
NOTE: that the discount must be properly configured. If the user entered a credit line to the invoice the G/L Account MUST identify the discount income account and cannot use the same tax liability account as the tax lines.
Click one of the following to create the expense invoice:
Click Finish to process the payment expense invoice. Review [Financials] Vendor Payments > Selecting Invoices to be Paid for steps to generate the payment.
Click Close to create a purchase order but not process the document into an expense invoice.
The sales tax payment invoice can be deleted and the payment wizard relaunched. Note that the system marks sales tax transactions paid when invoice is processed. Creating an invoice manually without using the payment wizard does not properly mark sales tax records paid.
Review [Financials] Expense Invoices > Processing an Invoice for instructions to process the invoice.
This report requires that the payment wizard to create the payment invoice (see previous section) has been completed.
Selectfrom to list tax liability totals.
Reports can be printed to list the transaction detail by selecting the appropriate report from the Print button located on the tax rate dialog. Review [Main] Reports > Print Button for instructions to add specific sales tax reports to the Print button.