I’m testing what happens when I add the landed costs through my purchase receipt.
Our 12% sales tax is applies to the cost of what we buy as well as the shipping costs to bring it here.
For example, I buy $100 of goods and spend $25 on shipping, which I add to the “taxes and charges table.”
I need to pay 12% of sales tax on $125, so $15. But I’m only able to apply the 12% to the $100 and not to the total of $125.
Also, when I enter taxes and charges, do I apply the taxes to a “taxes paid” account and the shipping charges to a “stock shipping charges” account or to “expenses included in valuation”?
Lastly, what type of account is “stock shipping charges”? Is it cost of goods sold? expenses included in valuation? or something else?