Report Description & Purpose

The Sales Tax Report aids in reconciling Journal Entries booked to the Tax General Ledger Account by allowing users to easily view sales taxes invoiced during a given time frame. For these invoices, the report looks at invoice line items to estimate Total Tax Liability.

Features & Primary Benefits

• Break down of applied taxes in a given period of time. 
• View outstanding tax liability for Posted, Paid, and Partially Paid Invoices.
• Filter and group tax amounts by Invoice, Customer, Product, Plan, etc.

Predefined Filters

The following filters are automatically applied to the Sales Tax Report. Click the Filters arrow to expand the section and adjust the criteria as needed.

While the default view provides tax amounts grouped by Tax Name, users have the ability to filter and group this report in various ways including by Customer, State, Product, Plan and Invoice ID.

Report Columns Defined

The sales tax report will be standardized to feature the following columns:

• Customer Name: Name of the customer
• Tax Name: As indicated on the Invoice.
• Gross Sales: Total Sales (before tax) - Total Credits (before tax).
• Taxable Sales: Total Taxable Invoice Amounts - Total Taxable Credit Amounts.
• Tax Liability: Total Tax from Invoices - Total Tax from Credits.

Note: Calculations will be driven by invoices and credit dates. Only invoices in posted, paid & partially paid status as of the report date will be considered in the report. 

Updated Calculation Logic

The calculation logic of the sales tax report has been updated to provide a more accurate financial picture.

• The updated sales tax report now correctly processes tax on both invoices and credits.
• Your liability for a period will be calculated by netting out the values of invoices and credits issued within that specific financial period.

How This Update Affects You

• As the new report uses a more precise calculation method, you may notice that its totals do not match the legacy "classic" sales tax report. This is the expected result of correcting the logic from the old system.
• For the report to calculate tax liability accurately, it is important to ensure that tax is correctly applied to credit notes when they are created, especially if you intend to credit the tax portion of an invoice.
• The report provides a stable, accurate view of your tax liability for any closed period.
• If you are currently using a custom Sales Tax Report, update it to incorporate the new calculation logic. If you require assistance with this update, please reach out to our support team for guidance.

Custom Sales Tax Report Available: We understand that some teams may have workflows that rely on the deprecated columns. If you have been relying on "Total Tax Collected" and "Total Tax Due," please reach out to us. A custom report can be built to address any requirement.