About use taxes for payable invoices

Some states levy a use tax on out-of-state purchases. Sage 100 Contractor adds two lines to the invoice. The first line for the use tax debits the same ledger and subsidiary accounts indicated on the first row. For example, if the first row debits the Materials ledger account, the use tax also debits the Materials ledger account.

The second line for the use tax debits a negative amount to the Sales Tax Payable account, increasing the balance. The Sales Tax Payable account is set up on the Receivables tab in the 1-8 General Ledger Setup window.