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Former Member

Can sales tax liabilities and payments to taxing authorities be offset in AP postings?

US customer invoices include a credit posted to a sales tax liability account. When the tax department calculates/verifies the tax liability per taxing authority, they provide an invoice to AP to pay the vendor (the taxing authority). The debit is posted to a clearing account because it cannot be posted directly to the sales tax liability account. FB41 is then used to offset the debit to the sales tax liability account. Is there a way for AP to post the vendor invoice such that the debit can be posted directly to the sales tax liability account, thus eliminating the need to post to a clearing account and then another entry using FB41?

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