Sales Tax Reporting

Make sure all errors from Invoice Register for period to be reported on have been corrected.

Run the Taxtype/Taxcode report for the date range and State to be reported on.  Note:  The index that the Taxtype/Taxcode report uses can be maintained on-line or as a batch index.  You should determine before running the report how the index is being maintained on your system.  If the index is maintained on line then you may run the report at anytime without re-indexing the data used by the report.  If the index is being maintained as a batch index, then the Invoice Line Item file will need to be re-indexed before you run the report and the each time that data in this file is changed (a batch index is only updated when the index file is rebuilt, you will need to rebuild the index anytime data is changed and you wish to report on the changed data). If you maintain the index for the report on-line, then you should select Y to detail and N to Create Index. If you maintain the index for the report on a batch basis, then you should select Y to detail and Y to Create Index

Examine the report.  Each line item must have a valid Taxtype and Taxcode, and the Inventory Taxable flag must be present and correct for each item.  If this information is missing the extended totals on the report will not be correct

Fill in any missing line item tax information with the correct values and edit the customer and inventory items if necessary so that the error(s) do not reoccur.

Rerun the Taxtype Taxcode report and select Y to create index again.  The report uses a batch index, so the index must be rebuilt if you have done any editing in the previous step.

Match the Total sales from Taxcode report to the Cost of Sales Report for the same period.  The totals should match.  If they do not, then the Taxcode report still has line items with missing information and these items must be corrected before proceeding

Once the Taxcode report has been matched to the Cost of Sales report, run the Sales Tax Adjustments report.  This report lists all invoices which have header sales amounts but no line item prices or tax amounts.  These invoices are created to adjust the sales tax amounts on other invoices and these adjustments are usually deducted from the sales tax amounts collected for the Taxtype Taxcode combination in which the invoice was created. 

Use the corrected Taxtype Taxcode Report and the Sales Tax adjustment reports to fill out the tax return provided by the authority to which you are reporting.



Sales Tax Reference Information