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Purchases and Sales Tax

AmbiEscentsAmbiEscents Member Posts: 2

Hey guys, need some help please. I have a candle/soap business & i am terrible at accounting. i need to know how to reconcile items purchased for the business. For eg. i buy soap/candle moulds, containers for the candles, wax, oils, dyes etc. in New Zealand we claim the GST portion (15%) of expenses as long as it is business related. so do i just create an account (purchases) under COGS? or expenses? and how do i load a 15% GST portion on it so that come end of year, i can see how much i am able to claim back? hope this makes sense

edited December 17, 2019 in Accounting Technical Support

Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hi @AmbiEscents . I'm not 100% sure what you mean when you say reconciling items, although Wave doesn't handle inventory so that might answer your question.

    In regards to the tax itself, you can create a tax under Settings > Sales Tax and add it to all of your purchase transactions. If you're accounting for your purchases through our Bills feature, then you can just add the Sales Tax directly to the bill. Both of these methods will take care of your tax issue, and then you can view a report on this under Reports > Sales Tax Report when necessary.

    edited December 17, 2019
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