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Setting Up a Use Tax in Sage 300 Tax Services

in: Software Tips and Tricks, Sage 300 ERP

We have recently been asked by several clients if Sage 300 ERP (formerly Sage Accpac) can calculate a Use Tax on purchases made from vendors who do not normally charge sales tax. The answer is yes. Setting up a Use Tax is actually a two part process: the setting up of the Use Tax in Sage 300 Tax Services and the recording of the actual invoice from the vendor. In this article, we will show you how to set up a Use Tax in Sage 300 Tax Services.

To set up a Use Tax in Sage 300, follow the steps below:

  1. Click on Common Services à Tax Services à Tax Authorities.
  2. Name the tax authority something descriptive and meaningful for you. For this example, I simply used USETX.
  3. Click on the Accounts tab.
  4. Click the Expense Separately box, and enter the Sales Tax Payable G/L Account.
  5.  Click Add/Save.
  6. Next click on the Tax Classes icon.
  7. Enter the tax authority.
  8. Set the Transaction Type to Purchases and Class Type to Vendors.
  9. Enter one class (see below).
  10. Click Add/Save.
  11. Change the Class Type to Items, and enter two classes similar to what is entered in the example below.
  12. Click Add/Save and then click Close.
  13. Click on Tax Rate, and enter the Tax Authority and Transaction Type to Purchases.
  14. Set the Use Tax as a negative percentage, and click Add/Save.

    The final step to setting up Use Tax is to create a Tax Group (similar to the example below). Once you have set up the Tax Group, Sage 300 is ready to be used to calculate and report on your Use Tax purchases.