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Wisconsin (WI) work in progress Sales Tax

The State of Wisconsin (WI) does not require certain industries to pay State Sales Tax on long term projects until they are completed.

In QuickBooks Premier edition this can be resolved with using a Sales Order. However, in the QuickBooks Pro edition, Sales Orders are not available. A customer who is not in a position to upgrade to QuickBooks Premier will have to work around the problem to keep track of the Sales Tax to be paid when the job is complete.

How to fix it
The steps to complete a work around for use with the QuickBooks Pro edition are as follows:
  1. On the Chart of Accounts, create an other current liability account, a Work In Progress (WIP) Sales Tax Payable account. 
  2. On the Item list, create a Sales Tax account using the Sales Tax item created in step 1; call it WIP Sales Tax WI
  3. On an invoice use the WIP Sales Tax WI account for the Tax
  4. The Tax continues to accumulate until the job is completed. 
  5. When the job is completed, the Tax on the invoice is changed to the regular State Tax by the bookkeeper. 
  6. The bookkeeper must remember:
    •  Not to pay the WIP Sales Tax WI when doing quarterly Tax payments;
    •  To change the Tax on the invoice to the regular State of Wisconsin Tax
  7. The WIP Sales Tax WI account amount for the project will then be in the regular State Tax amount and can be included in the next Tax payment. 
KB ID# SLN42121
10/27/2016 5:43:24 AM
PPRDQSSWS400 9138 Pro 2017 8caff0