Hi-
When you run your sales tax report for the month, how are the taxes calculated for recurring invoices and such items where there are multiple payments toward one total? In other words does it take a percentage of the total tax owed based on the amount paid for that month?
Hi,
I've read the comments on this post from May 7, 2020 to December 6, 2020 and so far see nothing to help. The most relevant post is from September 14. If you read through the question & response, there is no actual answer to the problem presented. My version is the same as that poster, but I'll phrase it differently in hopes of getting an answer.
When a payment is posted in my anchored asset account (my business checking account), and I categorize it as a sales tax payment, Wave creates a DEBIT in my account named "Sales Taxes and Sales and Purchases."
Either that should be a CREDIT, to correspond with the DEBIT in my checking account, i.e. withdrawal, or there should be a corresponding CREDIT to my Sales.
In other words:
Debit: Checking account for amount paid to State Gov for Sales Tax collected
Credit: Reduce Sales by corresponding amount
Again, referring to the question from Sept 14, the way Wave currently records Sales Tax payments seems backwards and creates a negative liability.
Hi @BethanyD , because Wave uses accrual accounting, the amount of tax will be generated in the report as soon as your recurring invoice is generated. Whether your customer has actually paid the invoice or not doesn't effect if the amount shows up in your Sales Tax Report.
Hey @MJ_1 , thanks for taking the time to write this post. I'd love to look into this some more for you but I do have some clarifying questions. You mention "Sales Taxes and Sales and Purchases". Where are you seeing this? Can you send me a screenshot? Can you also let me know what other repots you're looking at when observing the debits and credits?
If you'd like to edit your sales taxes, please head over to Settings > Sales Taxes and press the pen icon beside the tax in question. You can also edit your invoices by heading over to Sales > Invoices > select the invoice in question > Edit invoice.
Hi, I need to know the ex-sales tax amounts of my expenses for my annual income tax assessment. Is there a way to run a report giving me the totals for the year in each category without sales tax?
hey @LesteT1, to add sales tax on invoices: you'll first need to add an item. Once an item has been added, you can then either select a sales tax from the "Tax" drop down list, or create a new sales tax from the drop down list if you haven't already created the sales tax.
hi @KatR, to run a report for each category, please click into Reports > Account Transactions (General Ledger) > Select account from the drop down list. You'll notice here, that numbers reported will be only the subtotal amount and will exclude the sales tax amount (if sales taxes has been added to transaction).
Comments
Hi-
When you run your sales tax report for the month, how are the taxes calculated for recurring invoices and such items where there are multiple payments toward one total? In other words does it take a percentage of the total tax owed based on the amount paid for that month?
Hi,
I've read the comments on this post from May 7, 2020 to December 6, 2020 and so far see nothing to help. The most relevant post is from September 14. If you read through the question & response, there is no actual answer to the problem presented. My version is the same as that poster, but I'll phrase it differently in hopes of getting an answer.
When a payment is posted in my anchored asset account (my business checking account), and I categorize it as a sales tax payment, Wave creates a DEBIT in my account named "Sales Taxes and Sales and Purchases."
Either that should be a CREDIT, to correspond with the DEBIT in my checking account, i.e. withdrawal, or there should be a corresponding CREDIT to my Sales.
In other words:
Debit: Checking account for amount paid to State Gov for Sales Tax collected
Credit: Reduce Sales by corresponding amount
Again, referring to the question from Sept 14, the way Wave currently records Sales Tax payments seems backwards and creates a negative liability.
Thanks in advance for your help.
Hi @BethanyD , because Wave uses accrual accounting, the amount of tax will be generated in the report as soon as your recurring invoice is generated. Whether your customer has actually paid the invoice or not doesn't effect if the amount shows up in your Sales Tax Report.
Hey @MJ_1 , thanks for taking the time to write this post. I'd love to look into this some more for you but I do have some clarifying questions. You mention "Sales Taxes and Sales and Purchases". Where are you seeing this? Can you send me a screenshot? Can you also let me know what other repots you're looking at when observing the debits and credits?
Let me know and we'd be happy to advise 🙂
Hi AlexL!
I created my first invoice draft and need to send it to my client today. The thing is... I entered the sales tax wrong.
How can I delete a sales tax? I had check tutorials on youtube and read on a lot of wave article and didn't found anything.
Thanks to help me out!
Cinthia
Hey @CinthiaR !
If you'd like to edit your sales taxes, please head over to Settings > Sales Taxes and press the pen icon beside the tax in question. You can also edit your invoices by heading over to Sales > Invoices > select the invoice in question > Edit invoice.
Hello,
How can i manually enter my taxes in invoices ?
Hi, I need to know the ex-sales tax amounts of my expenses for my annual income tax assessment. Is there a way to run a report giving me the totals for the year in each category without sales tax?
hey @LesteT1, to add sales tax on invoices: you'll first need to add an item. Once an item has been added, you can then either select a sales tax from the "Tax" drop down list, or create a new sales tax from the drop down list if you haven't already created the sales tax.
hi @KatR, to run a report for each category, please click into Reports > Account Transactions (General Ledger) > Select account from the drop down list. You'll notice here, that numbers reported will be only the subtotal amount and will exclude the sales tax amount (if sales taxes has been added to transaction).