The Vendor record allows you to identify your Use Tax Vendors for additional tax considerations.
Use Tax Setup
To do so, open the Vendor record where Use Tax needs to be enabled, then navigate to the 'Vendor Additional Info' tab and locate the 'Use Tax' checkbox. Check the box to enable Use Tax filtering and then save the Vendor record.
Once this has been completed, there are no additional steps required to capture the AP Activity associated with this Vendor for Use Tax purposes. Additionally, the Use Tax setting is retro-active, meaning if you update this setting at year end, all of the transactions for the Vendor can be captured for Use Tax considerations.
Reporting on Use Tax Vendors
When you are ready to identify all of the Use Tax transactions that need to be considered for tax purposes, you can review them via the 'Purchases by Vendor' report found in My Reports.
Click the 'Customize' button to view the report parameters.
Select the date range, the Locations, whether Unapproved transactions should be shown, and then click 'Yes' on the 'Use Tax' field. This will run the report only for Vendors that have been designated as Use Tax Vendors.
The Report Viewer will open in a new tab, where you will be able to review and export your Use Tax transactions by Vendor.