Do you have to separate the sales tax paid to a vendor when recording in QB?
I have entered all the checks that were written. I just want to know if I need to go back and separate the sales tax that were paid to the vendors. If so, what would be the account to select?
You did alright.
There is no need to separate sales tax from Total Bill and coded it separately unless you’ve some local/state tax advantages.
What about when I’m imputing a bill for something I bought at the Home Depot and I’m going to BILL a customer for it. Do I need to have a separate line for the sales tax paid for that purchase?
If it’s a material purchased with sales tax and it’s also billable back to a customer as taxable item, it’s not easy handle it in QuickBooks. It also depends on state’s sales tax regulations as well. In some states, you will end up charging sales tax again to a customer even though you’ve already paid sales tax at purchase as non-resale item. You may have to get instructions from your local sales tax office.