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In my current volunteer role for a small nonprofit, I am working with sales orders. This nonprofit has in the past added sales tax (they are not yet tax exempt) and S&H into the items ordered, so they end up in accounts of CO

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Your question has been slightly truncated by putting extensive text into the title block. I Suggest you expand your question further, by asking it again and filling in the question detail section of the format.

From what I can gather you are having some difficulty with the bookkeeping associated with the sales taxes and shipping and handling expenses.

Until your organization receives its IRS tax free designation (501 derivative) you will not only have to charge sales taxes but also pay taxes as an organization on revenue generated from sales.

One way to deal with the accounting aspect is to set up separate general ledger accounts for sales taxes and S&H charges, book sales taxes as a business expense and charge S&H as part of the product cost of sales. These accounts would then reside in the customer ordering system and map the expense and cost of sales to the general ledger.

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