The Sales Tax Bot automates VAT and other Sales Taxes calculations.
It works by reading the properties in your book, applying taxes rates and recording another transaction.
Take a look at these examples:
You manufacture Product A from the Materials A and Materials B. On Product sales register 7.25% Sales Tax and on the Materials purchases you register respectivelly 7.25% and 8.5%.
- Tax on sales
Create an Output tax (liability) account.
Create a Product A (incoming) account and insert the properties:
- Set the tax_description to the Product A account.
- Set the tax_rate to the Product A account.
- Tax on purchases
Create an Input tax (asset) account.
Create a Materials A and a Materials B account (outgoing) and insert the properties:
- Set the tax_description to both Materials accounts.
- Set the tax_rate to both Materials accounts.
Record purchase and sales entries with the taxes included so the Bkper Sales Tax Bot can calculate and record it on the respective asset or liability account.
Tax transactions working example
Notice the transactions recorded by the Bkper Sales Tax Bot on the right.
Closing the Sales Tax period: Balance Tax in with Tax out to calculate the due (or receivable) amount.