Sage 100

Does anyone have a solution for paying tax after the invoice has been paid not when it is invoiced? We had a request or two for it and I was wondering if there was anything already out there.

You mean like invoicing for extra tax?

No. Like, not paying the government for tax collected until you actually collect it from the customer. (cash basis) instead of paying the government after you invoice and hope that the customer will pay you or that they will pay you within the same time frame you paid the government.

The AR Sales Tax report shows tax collected - does that not work? There's no way to reconcile which invoices were paid that I'm aware of at least. I had another consultant ask me if there was some way to do so but I didn't have a ready answer.

AR Sales Tax report is based on what you have invoiced. I know I can create a report based on invoices paid and calculate the tax for just those paid. Just looking to see if there was anything already out there before I went down the road of creating it.

But it also shows sales tax collected, at least mine does...

The AR Sales Tax Report shows Sales Amount, Taxable Sales, Nontaxable Sales, Taxable Freight, Nontaxable Freight, Taxable Tax, Exempt sales, and finally the Sales Tax Amount. Depending on the type of report (Detail, summary, etc) you would see a line with the invoice and date. The report doesn't show if you collected that amount from the customer (ie customer paid your invoice). The report reflects all sales tax from all invoices recorded since the last time the report was printed and the file was cleared. Do you have some other report that I am not aware of? :)

OK I do see it show sales tax collected at the bottom. Let me see how that is calculated.

OK that is calculated based on what has been paid. It is a bucket that is updated with cash receipts. It will keep that bucket as long as you have not cleared the tax file. Not sure on the actual calculation (I didn't want to get into the source code) but I would think that you have a few issues: 1) Data is stored as a bucket tied to the invoice number. The table can be cleared and bucket value lost. 2) The bucket amount could go over the amount that to collect since a purge would clear any partial payments from month to month if you clear after each month. I figure it is a % of the payment applied to the tax calculated. 3) To see what tax is to be paid each month you must clear the table each month Thanks @ThereseLogeais for pointing it out. I will see if the customer can work with it. I think he will still want us to do something that he can reprint (at least as long as he keeps the payment history). Seems like the timing of running the report and purging the report may be too much for the way the company works. They don't always close the month on time and they are not really disciplined.

I remember back in the Report Master days, I had written a report to show the detail (if I remember correctly!) but I have never been able to re-create it (probably because I don't remember exactly what it showed!). Good luck!

One other option to cash basis reporting/filing would be to pay as you invoice but if you write off something, enter it as a credit memo with the appropriate tax amount credited (sort of like when something has been invoiced as non-taxable and you need to adjust the tax). You basically credit the taxable amount on one line then add a second line that is nontaxable as a debit so the net invoice is just the sales tax credit. Does that make sense?

I modified the cash receipts history report to get sales tax paid. I had to work through partial pays etc.

Thanks for the feedback everyone. I think the customer has decided to use the built in report and to manually keep up with it. He is going to see if they can manage clearing the file each month to get the monthly tax collected and dealing with it that way. They have another mod that we will be doing for commissions and I think they want to put the budget to that instead of the sales tax issue.

Reporting sales tax based upon payments can be challenging. An invoice may have sales tax based upon varying tax rates for different products/services. If a partial payment is made, you have no way of knowing which line items are being paid, and therefore can't accurately determine how much tax is actually collected. Probably not an issue in states where the rate is same for all products/services, but a problem in CT, where rates vary from 1-9.35% based upon the product or service.

@MarkKotyla Does Avalara take care of this problem?

I know Avalara has the ability to set up special taxing rules for different items or item types. I've never had to do so but I know it can be done.

I don't think Avalara can, as they only record invoice activity, not payment.

Avalara does only record on invoice activity. I talked to them and they suggested to keep the invoice in data entry until they pay it and then it would report right. Which I thought was crazy talk. He said that he knew of one customer who had the same request I had and he thought that was the way they got it to work.

Obviously, Avalara does NOT track payment info but Mark's point was that if you're trying to do what John Pabian suggested, ie. track payments and calculate taxes collected based on percentage paid, that would be difficult due to items being taxed at different rates in CT. Wayne asked if Avalara could take care of that (I'm assuming he meant calculate taxes differently by item), which it can. MAS does not track which lines are paid but I did have a partner create a script to specify which lines were being paid for one of my customers. (They sold things on consignment so had to know which lines to apply the payment to.)

Sorry but the non-tracking of payment info is not apparent for someone who never used Avalara. It's also not an unusual request since as has been previously pointed out some states allow you to report sales tax on a cash basis.

I am currently writing a Crystal report for a client to report cash basis sales tax using AR_CashReceiptsHistory and AR_InvoiceHistoryHeader. I am trying to overcome the partial payment problem by applying ratios to the payment in relation to the invoice total. I still have a few bugs to work out but would be happy to share.

Jane,
Is the offer to share this report still good?
TIA.

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Bob Pfahnl
Manager - Silicon Valley
DSD Business Systems
San Diego CA
408-641-0922
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Original Message:
Sent: 10-20-2011 13:17
From: Jane Cavanaugh
Subject: Does anyone have a solution for paying tax after t

I am currently writing a Crystal report for a client to report cash basis sales tax using AR_CashReceiptsHistory and AR_InvoiceHistoryHeader. I am trying to overcome the partial payment problem by applying ratios to the payment in relation to the invoice total. I still have a few bugs to work out but would be happy to share.

I believe that's what John said he did but what about Mark who's in CT where different lines may be taxed differently?? As I said previously, I had a Report Master report many moons ago for cash basis sales tax reporting and I think I didn't include any tax amounts until the entire invoice was paid. Of course, you may never get paid in full in which case, you should pay tax on what was paid but if I remember correctly, my boss at the time felt that if he wrote off more than the sales tax amount, he wasn't liable for any of it...