[sfitisemanu]

In setting up our chart of accounts for our newly installed Oracle, I have to set up accounts for Sales Taxes.

One account is for Sales Tax collected, which is a liability account
The other one needs to be set up for Sales taxes charged on purchases of resale goods. What account should I set up for the latter and in what portion of the Financial statement should it appear?

Thanks

[CaptainForest]

So what I think you are saying is that you are collecting sales tax, how do you set that up?

Dr. Cash (as they are giving you cash)
Cr. Sales Tax Payable (a liability account to the government)