Use Tax due because Inventory was used by the company

I had a question recently asking me if there was an easy way to record Use Tax that becomes due when inventory is used by the company.

There are several existing methods to record Use Tax if you know it is due at the time of purchase, but this question applied to an existing inventory item, so those techniques are not useable.

Using the procedure below will allow you to record your use tax, reduce your inventory as well as tie it back to the inventory items you put in use. The ‘in use’ item should no longer appear on your Stock Status report.

Here's what I came up with:

1. Create a site for inventory put in use. I called mine USE TAX.
2. Create a GL account to use as the ‘Use tax inventory clearing account’.
3. Create a Tax Schedule and the appropriate Tax Details as a Purchases tax that will represent the Use Tax.
4. Identify the inventory put in use and create an inventory transfer to the USE TAX warehouse. Also change the Quantity Type from On Hand to In Use. Set the default GL account for In Use to the clearing account created in step 2.
5. In the Company Setup Options window, check the box next to ‘Calculate Taxes in General Ledger’.
6. Create a GL entry and push the ‘Tax Entry’ button that should now exist in the lower left-hand corner of the Transaction Entry window.
7. On the Tax Entry window, select the Credit Transaction radio button.
8. Use the ‘Use tax inventory clearing account’ created in step 2 as the account on the Tax Entry window.
9. Select the Tax Schedule created in Step 3 and then push the ‘Create’ button.
10. The Transaction Entry window for GL will open. You will need to provide the debit account to make the entry balance. This is the account you want the expense (or whatever) to land in as a result of putting this inventory item in use. This is normally an expense account (this might also turn into a fixed asset – that would be a different set of procedures).
11. Enter the vendor invoice for the balance in the Sales Tax Payable account (the amount was credited to the account in step 10). The PURCH amount should credit the account or accounts you set up with each of the tax details. The PURCH debit should clear that account out. The credit will, of course, be to accounts payable.
12. Pay the Vendor.

Summary:

Transferring the inventory to a USE TAX site will be an easy way to track the specific items on which you have remitted use tax. It also will remove it from the Stock Status report, and the GL inventory account.

The tax entry to the GL will calculate the appropriate tax amount and credit the taxes payable account you set up on the Tax Details. The Debit account for this transaction should be the account you want the inventory cost plus the sales tax to land in. This is usually an expense account.

The Vendor invoice transaction will clear out (debit) the Taxes Payable account – which should be the PURCH account. The credit side of the entry goes to your regular A/P account.

Here’s what the T-Accounts look like using the Supplies Expense account as the ultimate landing place for the item put in use (plus the UseTax),

Enjoy!
Leslie Vail

Technorati Tags: Use Tax,Purchases Tax,In Use Inventory

Dex.ini file uploaded to Box 07-28-2014

The link to the dex.ini download was not working so I’ve refreshed it.
You can access the latest Dex.ini file on Box. Download here: DEX.ini. Here’s the link done the long way: https://app.box.com/s/xkgae2rz1vil1ap4o579

Until next time!
Leslie
07/28/2014

Never Forget to Match that Purchase Order Again!

YAY! This one was added to Dynamics GP!

Vote for Product Suggestion ID: 669719

https://connect.microsoft.com/dynamicssuggestions/feedback/details/669719/gp-never-forget-to-match-that-purchase-order-again

There are 18 votes so far. This process really works, I’ve had two of my suggestions actually make it into the product!

Too often a vendor invoice comes into the company and it's entered into A/P without going through the invoice matching process in POP. We need a method for the user to be alerted if a vendor's invoice is entered to the Payables transaction entry window while there is an outstanding uninvoiced receipt.

The problem is that we end up with uninvoiced POs,  or worse, the vendor is paid twice by mistake.

While you’re at the Connect page, I suggest you browse through all of the good suggestions that have been logged. You may find others that are worthy of your vote!

Until next time,

Leslie

Speed up your Macros

 

Today I delivered a Webinar on Macros for GPUG. I loved doing it, but there are so many things to cover that an hour just doesn’t do it justice. I talked about adding the ShowAdvancedMacroMenu=TRUE switch to your Dex.ini file to reveal additional functionality that can make macros a lot more robust. No new software to buy, just an extra line (called a switch) in the Dex.ini file.

Even with this switch, a macro still can’t throw up dialog boxes with yes/no/never mind buttons on it, but you can make your macros run significantly faster using this tool. It speeds them up to run at least twice as fast. This is especially useful if you’re doing large imports or mass changes. Macros running under this mode took half the time of others. For longer macros, it was even more astonishing.

After you add the above switch to your Dex.ini file, the Advanced Macro menu becomes an option on your Macro menu. Once you update your Dex.ini file, your menu will look like this:

All of the goodies are in the Status window. Pictured below is the Status window. I’ll go through this window and point out the things that I like to use.

Below I’ll try to define each of the items numbered above:

1. Shows you the name of the macro currently being recorded and what line it’s on.

2. Shows you the name of the macro currently being played, and what line it’s on.

3. This is the magic checkbox that turbo charges your macro. Checking this box turns off the complete redraw and hides the interface flash thereby making the macro run twice (at least) as fast.

4. The line in the macro you want to jump to. This is a great way to find out what was going on when your macro fails at line 7463 for example. You can put that value in this field and the results will display in the scrolling window at the bottom. You can also restart a macro to begin playing at the jump to line.

5. The number of lines to display in the scrolling window.

6. Indicate where you want the macro to pause while it’s playing. This is a good way to debug the macro or stop it from executing after a certain point is reached

7. The actual lines of the macro according to the lines displayed.

The easiest way to make this feature work is to click on the ellipses [. . .]button and browse for your macro file.

Once the macro is loaded, check the No User Interface Flash checkbox and then press the OK button. Your macro will launch running at lightening speed!

If there’s interest out there, I can go through each of the menu items on the Macro menu and the Advanced Macro and explain how to use it and what it does.

Live the Dream!

Leslie

Report Writer–copying package files, beware

 

I had a client call me today who was trying to copy the layout of the Check with stub on top and bottom- Graphical to the layout of the Check with stub on top. It wasn’t working.

She changed the top line of the package file  to read Check with stub on top and it imported beautifully. She could open it up in Report Writer and everything looked good. However, when she tried to print it she got something very foreign looking. It had switched to a graphical report, and it had a stub on top, but it didn’t produce the face of the check, and the dollars where all messed up.

Below is the only thing that printed after the import of the ‘new’ package file:

It’s got a nice looking stub on top, but the rest of the check was missing. Something had gone terribly wrong.

Further investigation revealed that the Check with stub on top report, before it was modified, contained 7 tables. The Check with stub on top and bottom- Graphical contained only 5. We could import just fine between two of the formats that had the same 7 tables, but the formats that had only 5 needed to be imported into a format that had the same 5.

We needed a check format that contained the same 5 tables as the Check with stub on top and bottom- Graphical. Luckily, the Check with two stubs on top matched up perfectly. 

So, if your modified reports coming from edited package files don’t appear the way you think they should, check the tables. If the tables are not compatible, the report will not work the way you want.

Until next time!

Leslie