Accounting for and tracking itemized tax exemptions


You may be required to itemize your tax exempt sales totals on a monthly basis. Each customer is assigned a tax status but this currently cannot be reported on an invoice. Big Business accounts for you taxes collected, and for individual customer's tax status, and invoice totals, but there appears to be no obvious solution on how collect data for totals of paid invoices that were tax exempt for specific reasons. This solution offers one way to keep track of these tax exempt payments and itemize the totals. (5005)







It is better to track payments rather than invoices in order to determine relevant values for tax liability or exemption. If you do invoice quick searches you will get the invoices created in that month and not invoices that were created earlier and then paid this month. Since the payments represent your liability, or lack thereof, if you can denote a payment when it is entered as tax-exempt it this allows you to collect data on the tax exempt payments for a certain period.

Assign a letter for each exemption you must itemize ("I" for interstate, "N" for nonprofit, etc.) and if necessary create a key listing the letter assigned to each tax status/tax exemption reason. Each "Receive Money" transaction has a space for a reference #, into which you will often insert a Sales Order or Invoice number and we will use this field to track the tax-exempt payments. If you use the Sales Order # or the Invoice # in the "Reference #" field, leave them there, but if the payment is from a tax exempt customer, add one of the assigned letters as a prefix in the "reference #" field denoting the payment as tax exempt.

You will now be able to track those exempt payments via the Receive Money Quick Search. In order to find the amounts of exempt payments for a previous period you would then go to the Receive Money Quick Search and enter the date period you require. Then choose "more choices" and choose "Reference #" for the search field, and "begins with" as the rule and enter the letter you assigned for the specific exempt status. This will return all payments for the period that are exempt for this specific reason.



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