On Wed, 30 Oct 2002, Marius Kjeldahl wrote: > > When I add transactions in AP from for instance the phone company, the tax is > already included in the bill from the phone company. So I cross "tax included" > and everything seems to be calculated correctly. > > However, the tax parts of these amounts are then being accumulated in the 2320 > "Current liabilities" account, which is somewhat strange to me (not being an > accountant). Having an account to keep track of how much tax I've paid is fine, > but I am not sure why it should be listed under current liabilities since it has > already been paid as part of the invoice.
I think it is supposed to be a liability because you paid it. When playing with accounts like this, the GL report listed the transaction as a whole balanced with one payment entry, plus the amount and tax transactions individually, balanced with the second instance of the same payment entry. (i.e. double-entry.) Does that help? Does the GL balance it out? --mark--
