Tracking tax on expenses paid by credit cards

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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.

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  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.

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

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  5. Enter the pay amount and click Save.
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