New Accounting

Tax on expenses can go to Sales tax recoverable

A new Accounting setting adds the tax entered on expenses to Sales tax recoverable, so the Sales tax report counts it.

Turn on Tax on expenses in Accounting Settings to add the tax entered on each expense to Sales tax recoverable instead of its expense account. The Sales tax report then counts it as tax paid on purchases.

It is off for existing books. Turning it on or off posts expenses already added again.