Sales tax on inventory
I order inventory products and pay the sales tax up front, then I charge my customers tax at the time of sale. Right now QB creates a sales tax liability for those sales to my customers. When I receive the bill for the inventory, I have created an expense account called Sales Tax Paid . This creates 2 problems. 1. I have this large outstanding liability to be paid and 2. The sales tax that was already paid should be included as part of the COGS so I can't just do a journal entry and move it to offset the balance due in liabities. Any ideas on how I can track this and keep my COGS accurate?