Collected Tax on Invoices

[ACAcatering]

I noticed an issue today.  When I go to reports and look at taxes, canceled invoices aren't taken out of the collected taxes.  I'm wondering how much I've overpaid on taxes because of this.

[ACAcatering]

This is another reason why I think the taxable and non-taxable totals at the top should be linked to the corresponding sales.

[JustinC]

What's up @ACAcatering!! 👋

Taxes are collected once the invoice is paid. If the invoice was cancelled before then, no taxes were collected because the customer technically never paid them. That's why they don't show up in reports. 

Am I missing something? Let me know in case I need to look further. 

[ACAcatering]

Hey Justin! Yes. The problem is that they DO show up in reports. For example, I had a wedding booked in March that had paid, but canceled because of the virus. When I went to look at the tax reports for March (to pay my sales tax), the wedding still shows up as a tax that was collected and not removed as a sale under "Taxes." I see the refund in the sales summary, but when you're working with multiple jurisdictions, the sales summary isn't helpful in paying sales tax. 

[JustinC]

@ACAcatering

Ahh, got it! Sorry I misunderstood. Since the refund wasn't issued in the same month that the invoice was paid, then the sales tax won't be removed from March's reports. Instead you'll see it removed in April's reports in the Tax line (this excludes custom amount/partial refunds and are specific to full or itemized refunds). 

Sorta confusing when reconciling your books, but in the grand scheme of things, the refund cancels out the tax collected from the month before. 

Hope I got it right this time around ! 

[ACAcatering]

Then it goes back to a suggestion I've had for a long time.  Link the taxable and non-taxable sales to the sales they correspond to.  It seems this would clear up a LOT for folks.