AP Tax question

Yahoo Archive
1
Ok I'm officially tired...I'm getting AP and AR confused....ignore my
comment!



M. Manasa Reddy
manasa@...
P: 630-806-2000
F: 630-806-2001


________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Wednesday, October 21, 2009 10:00 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Re: AP Tax question




One last thing you have to think about, do you have to report any of
this tax to any government agency?

We do, so we just use a misc charge to hit a GL account and use that
number at the end of the month to report to the government.



M. Manasa Reddy
manasa@... <mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001


________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of CharlieSmith
Sent: Wednesday, October 21, 2009 9:55 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Re: AP Tax question

While both points of view are valid, I would ask the question;

"Is the sales tax an overhead item that is built into the burden of
manufacturing materials or not?"

If not, then I would update the extended price (which in turn will
update the unit price) or consider a material burden rate.

If yes then I would guess that you are using a material burden and if
not then you are incorporating it in the manufacturing burden.

Charlie Smith

Smith Business Services / 2W Technologies LLC

www.vistaconsultant.com <http://www.vistaconsultant.com/
<http://www.vistaconsultant.com/>
<http://www.vistaconsultant.com/ <http://www.vistaconsultant.com/> > > /

www.2WTech.com

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Carol
Subject: [Vantage] Re: AP Tax question

Changing the unit price upon invoice entry will create more work. What
if you have 10 lines on the PO, so... meaning you have to enter and/or
revised the unit price on the 10 lines. I would rather use your PPV
account (create one header charges on all tax/frt etc.) for each vendor
invoices covering the miscellaneous charges (i.e. tax/frt).

By entering a header charges you can easily trace your GL Transactions
showing the vendor and invoice no., from there you can determine which
vendor charges freight etc.

Hope this will help.

________________________________

Most of what we purchase is for resale, and thus not subject to tax.
However, when an item is subject to tax, we post the tax to an account
titled "Sales tax paid to vendors". Although it would be nice to roll
the cost of tax into the item being purchased (and sometimes we do), the
value of acquiring that information has not been high enough to justify
the cost of acquiring the information.

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY

________________________________

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ,
"mmcwilliams22" <mmcwilliams22@...> wrote:
>
> We have a new Accounting manager & they have posed a qestion about AP
tax. They would like to know if others are just rolling the tax into the
price of the purchased items. What they would like to do is when the
invoice comes in just changed the unit price to reflect freight,
handling, tax, etc. instead of the AP clerk entering all these different
items.
>
> What are the benefits of breaking it out really? I know all these
items will PPV when posted but other than that I don't have an answer.
For some reason dealing with the tax is becomming a big issue. They
don't want the person entering the PO to enter at all, & do not want AP
to have to have it hit a seperate account.
>
>
> In the perfect world they would like to just record the tax in AP but
have it post to the expense account for the part class. But since we
have so many classes we do not want to create all those tax IDs.
>

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]






[Non-text portions of this message have been removed]
2
We have a new Accounting manager & they have posed a qestion about AP tax. They would like to know if others are just rolling the tax into the price of the purchased items. What they would like to do is when the invoice comes in just changed the unit price to reflect freight, handling, tax, etc. instead of the AP clerk entering all these different items.

What are the benefits of breaking it out really? I know all these items will PPV when posted but other than that I don't have an answer. For some reason dealing with the tax is becomming a big issue. They don't want the person entering the PO to enter at all, & do not want AP to have to have it hit a seperate account.


In the perfect world they would like to just record the tax in AP but have it post to the expense account for the part class. But since we have so many classes we do not want to create all those tax IDs.
3
Most of what we purchase is for resale, and thus not subject to tax. However, when an item is subject to tax, we post the tax to an account titled "Sales tax paid to vendors". Although it would be nice to roll the cost of tax into the item being purchased (and sometimes we do), the value of acquiring that information has not been high enough to justify the cost of acquiring the information.

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY

"The World Leader in Back-lit Mirrors & Mirror TV Technology"

T 425 776-4946
A 11831 Beverly Park Rd, Bldg D, Everett, WA 98204 USA
www.electricmirror.com<http://www.electricmirror.com>

Note: The information contained in the e-mail, including any attachments, is legally privileged and confidential. If you are not the intended recipient you are hereby notified that any reading, use or dissemination of this message is strictly prohibited. If you have received this message in error, please immediately notify us by telephone at 425-776-4946 and delete this message from your system. Even though this e-mail and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free, and no responsibility is accepted by Electric Mirror LLC for any loss or damage arising in any way from its use


From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of mmcwilliams22
Sent: Tuesday, October 20, 2009 1:52 PM
To: vantage@yahoogroups.com
Subject: [Vantage] AP Tax question



We have a new Accounting manager & they have posed a qestion about AP tax. They would like to know if others are just rolling the tax into the price of the purchased items. What they would like to do is when the invoice comes in just changed the unit price to reflect freight, handling, tax, etc. instead of the AP clerk entering all these different items.

What are the benefits of breaking it out really? I know all these items will PPV when posted but other than that I don't have an answer. For some reason dealing with the tax is becomming a big issue. They don't want the person entering the PO to enter at all, & do not want AP to have to have it hit a seperate account.

In the perfect world they would like to just record the tax in AP but have it post to the expense account for the part class. But since we have so many classes we do not want to create all those tax IDs.



[Non-text portions of this message have been removed]
4
Changing the unit price upon invoice entry will create more work. What if you have 10 lines on the PO, so... meaning you have to enter and/or revised the unit price on the 10 lines. I would rather use your PPV account (create one header charges on all tax/frt etc.) for each vendor invoices covering the miscellaneous charges (i.e. tax/frt).

By entering a header charges you can easily trace your GL Transactions showing the vendor and invoice no., from there you can determine which vendor charges freight etc.

Hope this will help.

--- In vantage@yahoogroups.com, "mmcwilliams22" <mmcwilliams22@...> wrote:
>
> We have a new Accounting manager & they have posed a qestion about AP tax. They would like to know if others are just rolling the tax into the price of the purchased items. What they would like to do is when the invoice comes in just changed the unit price to reflect freight, handling, tax, etc. instead of the AP clerk entering all these different items.
>
> What are the benefits of breaking it out really? I know all these items will PPV when posted but other than that I don't have an answer. For some reason dealing with the tax is becomming a big issue. They don't want the person entering the PO to enter at all, & do not want AP to have to have it hit a seperate account.
>
>
> In the perfect world they would like to just record the tax in AP but have it post to the expense account for the part class. But since we have so many classes we do not want to create all those tax IDs.
>
5
While both points of view are valid, I would ask the question;

"Is the sales tax an overhead item that is built into the burden of
manufacturing materials or not?"



If not, then I would update the extended price (which in turn will
update the unit price) or consider a material burden rate.

If yes then I would guess that you are using a material burden and if
not then you are incorporating it in the manufacturing burden.



Charlie Smith

Smith Business Services / 2W Technologies LLC

www.vistaconsultant.com <http://www.vistaconsultant.com/> /
www.2WTech.com









From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Carol
Subject: [Vantage] Re: AP Tax question

Changing the unit price upon invoice entry will create more work. What
if you have 10 lines on the PO, so... meaning you have to enter and/or
revised the unit price on the 10 lines. I would rather use your PPV
account (create one header charges on all tax/frt etc.) for each vendor
invoices covering the miscellaneous charges (i.e. tax/frt).

By entering a header charges you can easily trace your GL Transactions
showing the vendor and invoice no., from there you can determine which
vendor charges freight etc.

Hope this will help.

________________________________

Most of what we purchase is for resale, and thus not subject to tax.
However, when an item is subject to tax, we post the tax to an account
titled "Sales tax paid to vendors". Although it would be nice to roll
the cost of tax into the item being purchased (and sometimes we do), the
value of acquiring that information has not been high enough to justify
the cost of acquiring the information.

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY


________________________________

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"mmcwilliams22" <mmcwilliams22@...> wrote:
>
> We have a new Accounting manager & they have posed a qestion about AP
tax. They would like to know if others are just rolling the tax into the
price of the purchased items. What they would like to do is when the
invoice comes in just changed the unit price to reflect freight,
handling, tax, etc. instead of the AP clerk entering all these different
items.
>
> What are the benefits of breaking it out really? I know all these
items will PPV when posted but other than that I don't have an answer.
For some reason dealing with the tax is becomming a big issue. They
don't want the person entering the PO to enter at all, & do not want AP
to have to have it hit a seperate account.
>
>
> In the perfect world they would like to just record the tax in AP but
have it post to the expense account for the part class. But since we
have so many classes we do not want to create all those tax IDs.
>





[Non-text portions of this message have been removed]
6
One last thing you have to think about, do you have to report any of
this tax to any government agency?

We do, so we just use a misc charge to hit a GL account and use that
number at the end of the month to report to the government.



M. Manasa Reddy
manasa@...
P: 630-806-2000
F: 630-806-2001


________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of CharlieSmith
Sent: Wednesday, October 21, 2009 9:55 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Re: AP Tax question




While both points of view are valid, I would ask the question;

"Is the sales tax an overhead item that is built into the burden of
manufacturing materials or not?"

If not, then I would update the extended price (which in turn will
update the unit price) or consider a material burden rate.

If yes then I would guess that you are using a material burden and if
not then you are incorporating it in the manufacturing burden.

Charlie Smith

Smith Business Services / 2W Technologies LLC

www.vistaconsultant.com <http://www.vistaconsultant.com/
<http://www.vistaconsultant.com/> > /
www.2WTech.com

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Carol
Subject: [Vantage] Re: AP Tax question

Changing the unit price upon invoice entry will create more work. What
if you have 10 lines on the PO, so... meaning you have to enter and/or
revised the unit price on the 10 lines. I would rather use your PPV
account (create one header charges on all tax/frt etc.) for each vendor
invoices covering the miscellaneous charges (i.e. tax/frt).

By entering a header charges you can easily trace your GL Transactions
showing the vendor and invoice no., from there you can determine which
vendor charges freight etc.

Hope this will help.

________________________________

Most of what we purchase is for resale, and thus not subject to tax.
However, when an item is subject to tax, we post the tax to an account
titled "Sales tax paid to vendors". Although it would be nice to roll
the cost of tax into the item being purchased (and sometimes we do), the
value of acquiring that information has not been high enough to justify
the cost of acquiring the information.

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY

________________________________

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ,
"mmcwilliams22" <mmcwilliams22@...> wrote:
>
> We have a new Accounting manager & they have posed a qestion about AP
tax. They would like to know if others are just rolling the tax into the
price of the purchased items. What they would like to do is when the
invoice comes in just changed the unit price to reflect freight,
handling, tax, etc. instead of the AP clerk entering all these different
items.
>
> What are the benefits of breaking it out really? I know all these
items will PPV when posted but other than that I don't have an answer.
For some reason dealing with the tax is becomming a big issue. They
don't want the person entering the PO to enter at all, & do not want AP
to have to have it hit a seperate account.
>
>
> In the perfect world they would like to just record the tax in AP but
have it post to the expense account for the part class. But since we
have so many classes we do not want to create all those tax IDs.
>

[Non-text portions of this message have been removed]






[Non-text portions of this message have been removed]