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.
- Enter the expense in the Expense Entries screen as usual.
- 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.
- 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.
- Open this bill in the Bill Payments screen and choose the pay method as Credit Card.
- Enter the pay amount and click Save.