Create all Taxing Authority Vendors
Within the General Card, select Type “Tax Collector”. Vendors that are not marked as “Tax Collector” are not selectable on the Tax Vendor drop down in Properties. Located in Settings > Vendors or Accounts Payable > Vendors.
General
On the General tab, select “Exempt” in Tax Profile. This is only used for payable vendors, not Tax Collectors, outside of the US.
Financial
On the Financial tab, select the Tax Expense accounts. These are the General Ledger accounts on the Taxes tab of the Required Accounts.
When processing a payable to the Tax Vendor, this will automatically reduce the amount in the Tax Liability accounts. This will in turn net the Tax Report and Trial Balance to zero for the associated period.
Repeat this step for each tax Vendor.