Dear
we have a sales tax requirement that is the following
in case of tax X (10%)- we are subject to exemption but the government fiscal policy requirement is that the accounting entry be as such :
Debit Expense Account $100
Credit Cash $100
Debit 44210 $10
Credit 44310 $10
The 44210 and 44310 get settled at the end of the quarter into account 44410
now the above entry shows Debit Credit of the same amount because those amounts are supposed to offset each other and in this case we don't owe or need to be reimbursed
now i setup my sales tax in a way , that at the sales tax group and checked the checkbox EXEMPT and i checked the checkbox USE TAX
but i am not sure what the effect of USE TAX is and i don't know if i adopt this , will anything appear at the end of the quarter after i run the sales tax routine
in this case i should get ZERO ,
in summary , i want my 44210 and 44310 to offset each other so that i don't owe the government any tax and they don't owe me
if i am doing anything wrong , let me know