Tracking tax on credit card expenses

Purchase Tax is the tax paid by your company on an expense item and is to be subtracted from the expense charge amount to avoid double-taxation for the client.

If your expenses happen to be paid with a credit card, this is how you can handle it in CORE.

  1. Enter the expense in the Expense Entries screen as usual.
  2. In the detail view, designate a Purchase Tax Rate (either a rate or an amount) to it. This will reduce the charge amount of the expense billed to the client. 



  3. Next, flag the expense entry as Reimbursable and approve it. This will create a system vendor bill that can be paid in the Bill Payments screen.


  4. Open this bill in the Bill Payments screen and choose the pay method as Credit Card.


  5. Enter the pay amount and click Save.
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