Quickbooks invoicing

[daveflintstone]

I read the quickbooks related posts, but didn't see this covered. I can't figure this out.

When you invoice a distributor in quickbooks, how are you handling the federal alcohol tax and your state excise/sales tax? I want the invoice to list the gross price per case, inclusive of taxes. I want quickbooks to calculate the federal and state taxes due per case, but not display that on the invoice as item price + fed tax + state tax = gross price.

Currently I just use a gross case price as the item price, and do the math for the taxes separately. But that makes the quickbooks reports inaccurate.

[PeteB]

I have the same problem in another accounting package

In the past I have been sending off the gross priced invoice, then editing my copy by splitting the sale into product with no tax then putting extra lines for the taxes. That way I can pull up a report of the taxes.

I wouldn't want to do it that way if I had a lot of sales

Just recently I have decided to itemise and show the taxes straight up so the customer knows where his money is going.

[daveflintstone]

Well okay, thanks for the input quickbookers.

Pete, itemizing the taxes on the invoice is not acceptable to my distributor, they want an all in case price for each item. And they are well aware of what taxes are paid anyway.

Upon further reflection, I decided to put each tax as an assembly item of the final case product, just like the ingredients and packaging parts. (I may be misusing quickbooks terminology here, oh well) This should accomplish both my goals of not listing on the invoice and keeping track of the taxes within quickbooks for accurate reports.

[Beauport Bob]

I agree Dave, When you move out of bond from "work in progress" to "warehouse" is that not when your tax consequence is initiated? Is that not when you assign your cost to the per bottle, then it is considered part of total cost of good sold? To be passed to next level. It is an excise tax on Production. Not a sales tax. Unless I misunderstand and you are speaking about a sales tax. It is all what your accountant considers GAAP for your arena.

We have that problem of trying to have distributors understand why should we, in-state, have to eat the tax and include that in their "formula" when they are willing to pay the state costs for the imported commodity products and layer on the tax after formula. Double standard at our expense. So another reason I continue to self distribute. Argggh.