 general idea would be I'm going to collect sales tax for some period of time if it was monthly then for the month of January for example which is going to be our practice problem I'm going to collect sales tax through the month of January and maybe I have until the end of February in order to pay the sales tax I collected in January to pay it in February or if it was on a quarterly basis possibly I collect sales tax for the whole first quarter January February March and I have until the first month of April the first month of the following quarter to pay the sales tax or possibly you're on a yearly basis where I can collect the sales tax for the entire year and then pay it by the following January of the following year that will typically be dependent upon those different schedules will be dependent upon where you're located and how much income you make if you make more income you would expect whoever's taxing you whichever state and localist tax and you will want you to pay them sooner is the general idea so we're just going to do it on a monthly basis here on terms of the sales tax so if I go into this then I'm going to say we've been collecting sales tax this whole time and January and February and if I go down to the end of the end of January down to here then that's the total where we stand as of the end that's the 2003 43 85 that's what we should owe you know now and then all the stuff that we collected in February we're going to have to owe by the end of March is going to be the the generic the system we're going to set up for the practice problem purposes so now we need to make a payment so I gotta make that payment so how can and just know if there's other reports we can do for the sales tax so if I go to the tab to the right right click and duplicate the tab and then I go down to the reports on the left hand side and I go then to I could type in like sales tax taxable sales so you got the taxable sales summary and taxable sales detail sales tax liability reports are your general reports if I look at the sales tax liability reports and I run it for 010123 to 013123 running that report uh this is this is uh what we owe at this point in time so gross total the tax amount is the 2003 43 85 if I go to the first tab and I go back into my sales tax and I go down to the end of January we've got the 2003 43 85 right so that's going to be 2003 43 85 so it's kind of it's helping us to link out what we what we owe at this point in time and now we got to write a check for that basically or have an expense form an electronic transfer form but usually we would do that with the internal system that has been set up and so we'll have another special check form if I look at like our flow chart what's happening here is we entered like an invoice or sales receipt those are the forms that increase the sales tax and then uh and then we're going to pay the sales tax and usually would we'd use like a special check form that here they have it as a managed sales tax which creates the check forms which are going to be giving or showing in the system as a special check form typically similar to like a pay bills form is a special check type of form it decreases the checking account or a payroll liability form that shows up as a check type form but is indicating that it's a payroll check form that's what we would normally do we might not be able to do it in the practice problem because we're not working real time let me show you what I mean if I go down to the taxes then normally it would tell us you know california deposit the amount that's going to be due and I can basically generate the check from here so for example you can see down here if I hit the more details it gives you the the more information the taxable assets the non-taxable sales the gross sales which can help you to actually generate the reports that might be necessary for the reporting down below you've got the status of all pay due overdue or open and the information detailed down below and then the tax period now if I go into this item down here I can view the tax return information note that when you're dealing with the sales tax it's similar to to be dealing with like when you're filing the form 1040 for an individual taxes which in theory if it was a perfect world if it wasn't so complex then you could just pay the taxes as the year goes and the 10 for 10 40 would just be an informational return just basically verifying that you've already paid the proper amount of taxes you wouldn't have any refund or any amount due at that point in time but the income taxes is way too complex with the progressive taxes to mean everything with the sales tax whenever you populate the tax return it should be an informational thing and again it'll be dependent upon that your location and who's charging you basically the sales tax but you would think it would be a summary type of form saying hey look these are the sales that were subject to sales tax here's how much I pay based on the rate here's how much I already paid you and hopefully everything has already been paid and it's an informational type of form that possibly you can get the information or help to to file with the use of the sales tax information here you can add an adjustment down below if there's an adjustment that is necessary now note for us because this is designed to run real time then it's it's a little bit difficult for us to use these reports in active time that's one of the problems with working a practice problem so if you're working out into the future on this then you might not have the same information in terms of generating the reports and whatnot so like for example right now it happens to be the end of january so if I hit the drop down and I say I want to look at last month then it gives us this information and overdue down below based on my current and if I view this then it gives us our information there's the froze so there it is then you get that then once you pay the taxes however you go through the payment process then you can record you know the payment here you can also try to automate the payment if you have a if you use some quickbooks for your payment processes but you can basically record the payment within the system so that everything ties out and then you would in essence record a check type of form that would have a special tick mark on it to indicate that it's a special check for paying off the sales tax you can also explore the autosave the sales tax with a quickbooks checking account explore quickbooks checking and but then again you're dealing with a quickbooks checking kind of thing which is a which is like an upstale type of thing which may or may not be useful we might get into that in more detail in future presentations but for the practice problem because we can't because we can't really work at real time we have to just basically make a check type of form so you wouldn't really want to do this in practice you would want to use the little widget down here if you're using the whole sales tax setup which should work nicely if you were running the practice problem in real time