Example: Posting Use Tax 
Example: Posting Use Tax
Here is an example from the purchaser's view of how use tax is posted. We assume that the purchaser is responsible for remitting the use tax.
Use Tax on Purchases (Self-Assessment) - Purchaser's Books
In this example, you are the purchaser. You post an incoming invoice. The price that the seller charges does not include sales tax. Therefore, you are responsible for remitting the accrued tax to the tax authorities where you consume the goods.
The tax base amount may include or exclude cash discounts:
The cash discount is recognized at the time of payment with the original invoice being posted including the cash discount. Assuming the payment is made within the discount period, the payment program recognizes and posts the cash discount.
The cash discount is recognized when the invoice is posted. The anticipated cash discount is posted to a cash discount clearing account. When payment is made, the clearing account is cleared by posting to discount taken or lost account. An advantage is that the expense amount is lessened by the amount of the discount.
