Issue/Symptom/Question

We are set up as a retailer in Penta as we invoice our customers for sales tax which creates an accrual on our balance sheet. Colorado has implemented this new “Retail Delivery Fee” that goes into effect on 07/01/2022.  Does Penta have a method to collect this?  It would have to function similar to the way we account for sales tax.

Applies To

Penta for Windows

Accounts Payable > Setup > Sales & Use Tax Maintenance > Tax Jurisdictions & Rates

Project Management > Owner Contract Information > Contract Information

Resolution/Fix/Answer

1. Create a new tax jurisdiction and optionally assign it a special GL account and/or Vendor for reporting and financial purposes

2. When there is a job that requires this tax be calculated, create a ‘Tax’ type Cost Plus contract line item, link the tax jurisdiction created in #1 above, and indicate which line items you want that tax to calculate on

NOTE: If this tax is based on certain materials only, you may need to break down the various material types in the schedule of values so you can have Penta only calculate the tax on the specific materials where the tax applies. Optionally, enter a Limit Amount that may need to be updated if the tax is on a per-shipment basis

3. When using the ‘Tax' Line item type, the accounting entries made during the billing process are as follows:

Debit: Accounts Receivable (from customer)
     Credit: Sales Tax Payable - Defaults to the GL account associated to the jurisdiction (not revenue)