I have prices of products I need to buy from a vendor. However, these prices do not include tax. How do I include tax for a product I am buying from a vendor in QuickBooks Desktop Enterprise: Accountant 18?
Farai, you don't mention if this is for Asset purchases or expenses (ref accounts), or inventory items (ref items), Or if these should have been non-taxable purchases in the first place. so this may be a bit confusing, but the solution will be similar... essentially you want to break out the sales tax to a separate expense (not payable) account from the purchase made.
There are also several ways to accomplish this, depending on if you're initiating the purchase with a Purchase Order, Bill, or writing a check directly, but the solution boils down to using /creating a separate "Sales Tax Expense" (not payable) account and referencing the expense on the final payment/bill (not necessarily the PO, if the PO didn't already include the tax).
In overview, create the PO including the inventory items being purchased. When the bill arrives, reference the PO, but then on the bill also select the account tab, indicate you sales tax expense account and amount, and note the tax added to the sale. Similarly, if a bill (or direct check, but no PO) is used, in the bill/check's item tab, show the items purchased, then on the bill/check's account tab (next to Items) indicate the sales tax account, amount and notation.
The only problem with the 'account' reference method is that it tends to 'get lost' because it's not included in the items list. so yet another method is to create an 'item' called "SalesTaxToVendor" that points to the expense.
If these are purchases that should not have been taxed, and are unable to get credited back from the vendor, then be sure to create an account/item that you can identify these purchases.
Hope that helps...