Example: Posting Sales Tax 

Posting a Customer Invoice

You post an outgoing invoice for 1,000 USD to the customer account with the jurisdiction code PA001001000 and the tax code C1. The offsetting entry is made to the receivables account 800000, Domestic Sales. The document overview then looks as follows:

Document overview

PK	Account	Debit	Credit
01	Customer	1,000
50	800000 - Domestic Sales		916.17
50	175001 - A/R Sales Tax State		61.84
50	175002 - A/R Sales Tax County		21.99

Posting a Vendor Invoice

You post an incoming vendor invoice for 1,000 USD with tax code I1. The offsetting entry is made to the expense account with cost center 111, to which the jurisdiction code PA001001000 is assigned. The document overview then looks as follows:

Document overview

PK	Account	Debit	Credit
31	Vendor		1,000
40	Expense	1,000

The taxes paid are stored by the system but are not displayed in certain G/L accounts.