Manually subtracting Sales Tax from deposit

Tammy_M01

I currently use a payment system for my business that deposits into my bank account each night for all credit card transactions that day. When I reconcile my deposits, I need to break it down into several elements. First, some of my sales are taxable and some are not. So I break those sales down and use the Include Sales Tax feature on the taxable items. Then I add the non-taxable items, the tips, and the merchant service fees. The problem I am encountering is that there is no way to just manually include an amount of sales tax that has been collected and just apply it directly to the Sales Tax account. This comes up for me since there are some instances that clients are using Gift Certificates for their services (or a portion of their services) and pay for their sales tax and tip with a credit card. So this amount is included in my deposit but it is not any sort of income, it is sales tax. I have already added the Gift Certificates to my sales when they were purchased as non-taxable income because that is what it is. The tax doesn't come into play until they actually use it for a taxable service. My previous accounting software would allow me to just manually put a dollar amount from the deposit directly into the sales tax account. I cannot do this with Wave and I am not sure how to record this correctly without it being a needlessly complicated process. This can also be an issue for refunds. I have tried to do this a few ways and now I am wondering if I am overthinking this or is it really this complicated in Wave? Can anyone help?

NicoletteB

@Tammy_M01 Lots to unpack here but I appreciate the details you were able to give. From what you described with only a portion of the payment needs to be taxed, I would create an invoice with the individual products. This lets you add taxes to the specific products which should be more accurate than what is currently happening.

You can then account for the merchant fees as described in this Help Centre article.