---
title: "Sales tax payable review"
sidebarTitle: "Sales tax"
description: "Reconciling the GL sales tax liability to the POS calculation, backing out marketplace-facilitator tax, and the RCY prepayment nuance."
icon: "receipt"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

Reconcile the GL sales tax liability to the sales-tax-collected calculation derived from the POS/sales entry.

<Info>
  **Source:** `Rackson_RRS_RCY_Review_Process.docx` sections 9 and 27.5.
</Info>

<Warning>
  **Marketplace-facilitator tax is the most common source of an apparent variance.** Delivery platforms collect and remit sales tax directly to the state on the operator's behalf — that must be **backed out** of Rackson's own liability calculation.
</Warning>

## The core distinction

Sales tax collected per the POS is **not always the same figure used when the return is filed.** Understand the difference before explaining any store-level or account-level variance:

| Figure | What it is |
|---|---|
| **Tax collected per POS** | What we calculated we *should* have collected |
| **Tax remitted per return** | What we *actually* paid, per the filed return |

A variance between them reflects **normal over/under-collection at store level** relative to what the return says — not necessarily an error.

<Frame caption="Sales tax reconciliation workbook, showing the marketplace-facilitator adjustment columns">
  <img src="/images/customers/rackson/review-process/image2.jpg" alt="Rackson sales tax reconciliation workbook with marketplace facilitator adjustment columns" />
</Frame>

## Step-by-step checklist

<Steps>
  <Step title="Pull the GL liability balance">
    For the period.
  </Step>
  <Step title="Calculate the expected liability from the POS">
    Before any marketplace-facilitator adjustment.
  </Step>
  <Step title="Subtract the marketplace-facilitator tax">
    The portion delivery platforms have already collected and remitted directly.
  </Step>
  <Step title="Compare expected to GL">
    If they don't match, locate the relevant tab/cell in the sales tax workbook and **identify which store(s) are driving the difference.**
  </Step>
  <Step title="Classify the difference">
    Confirm whether it is a **facilitator-timing item** or a **true posting error** before adjusting.
  </Step>
  <Step title="Document the store-level driver">
    For any variance above the working threshold, then mark the item reviewed.
  </Step>
</Steps>

<Note>
  **Illustrative example.** A roughly **$400 variance** was identified in one period and traced by locating the relevant tab/cell in the workbook and confirming which stores were driving the difference, before concluding whether it was a marketplace-facilitator timing item or a true posting error. This remains an open item — see [Open items](/internal/customers/rackson/open-items).
</Note>

## RCY (Dave's) — sales and cap tax

**Owner:** Betsy

The RCY version of this reconciliation **can get more convoluted than the RRS version** because of the volume of prepayments involved.

<Warning>
  There are prepayments affecting the **prior month** and separate prepayments affecting the **upcoming month**. These must be kept **visually distinct in the workbook — colour-coded** — rather than commingled.
</Warning>

A given month's sales tax activity is **not always fully paid by the time the books close** for that month. Rather than trying to isolate only the truly outstanding portion, the practical approach is:

<Steps>
  <Step title="Bring in the full balance for the month">
    Don't pre-judge which pieces are prepayments.
  </Step>
  <Step title="Clear payments against it as they're identified">
    As each payment is confirmed.
  </Step>
</Steps>

<Frame caption="Sales and cap tax workbook for RCY (Dave's), showing the prepayment colour-coding">
  <img src="/images/customers/rackson/review-process/image13.jpg" alt="RCY sales and cap tax workbook with colour-coded prepayment columns" />
</Frame>

<Note>
  On the RCY workbook, the **sales tax collected** columns represent what should theoretically be owed based on the POS/sales entry calculation, while the **payments** columns represent what was actually paid based on the filed return. **These two figures are not calculated the same way** — a variance between them reflects normal store-level over/under-collection, not necessarily an error.
</Note>

<Note>
  Sales tax reconciliation is handled **outside the core RRS/RCY balance sheet team** — Betsy owns it. On the close checklist it is a **WD6** task, distinct from the Ohio **CAT Tax** accrual which lands on WD2.
</Note>

## Related

- [RRS taxes and royalties workpapers](/internal/customers/rackson/workpapers/rrs-taxes-and-royalties) — the 22200 and 22250 preparer steps across five states
- [Delivery service reconciliation](/internal/customers/rackson/review-process/delivery-service-reconciliation) — where the facilitator adjustment also appears
- [NYC Commercial Rent Tax](/internal/customers/rackson/nyc-commercial-rent-tax) — the open multi-state tax question