Revision Date: June 30, 2025
Contents
2. Record and Deposit Sales Tax
1. Overview
This procedure provides the general processes for recording and handling Sales Tax that has been collected, in support of Policy 2810 Connecticut Sales Tax.
Questions regarding the taxability of transactions and any tax requirements should be directed to the University Tax Department.
2. Record and Deposit Sales Tax
A. General Guidelines
Yale units and individuals selling goods and/or services should, whenever possible, record Sales Tax collections simultaneously with the recording of taxable sales proceeds. Contact the Controller’s Office for an exception if it is not possible to compute the amount of Sales Tax when proceeds are recorded.
Once the proceeds and associated tax are recorded, promptly deposit the funds.
B. Recording Taxable Sales and Associated Tax
When proceeds from taxable sales are collected, the process by which they are recorded will depend upon whether the department conducts billing using Workday Customer Invoicing (also known as “Workday Non-Sponsored Accounts Receivable”) or conducts billing using a different mechanism (such as recording transactions to Workday via manual journals, cash sales, etc.):
- Billing using Workday Customer Invoicing (also known as Workday Non-sponsored Accounts Receivable):
When the buyer is invoiced for the sale and the sale is recorded as a receivable using Workday Customer Invoicing, departments record the Sales Tax via the Workday Sales Tax functionality (within the Workday Customer Invoicing system) at the same time the receivable is recorded. Note that Yale School of Medicine (“YSM”) Controller’s Office bills on behalf of the YSM departments.
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Billing Using Mechanism Other than Workday Customer Invoicing (Manual Journals, Cash Sales, Etc.)
When the buyer is invoiced for the sale and the sale is recorded as a receivable (i.e., the sale is made on an “accounts receivable” basis), departments [manually] record the Sales Tax via journal entry when the receivable is recorded. To do so, debit the appropriate receivable COA and credit using the COA information as follows:Enter two lines for each transaction:
- In the first line, record the income related to the sale with an appropriate Chart of Accounts (“COA”); and
- In the second line, record the sales tax collected, using the following COA segments:
- Company: CO01
- Yale Designated: [seller’s YD #]
- Cost Center: [seller’s CC #]
- Program: PG00363
- Project: PJ028450
- Revenue Category: RC261
- Ledger Account: 20017
o Ensure the sum of the amounts equals the total deposit amount. See Procedure 2801 PR.01 Recording and Depositing Cash Receipts for detailed Cash Sales procedures.
3. Report Monthly Sales Tax
University Sales Tax Report
Departments that conduct sales of taxable goods and/or services whether via cash, check, wire, credit card (online or point-of-sale), or other means, must complete and submit Form 2810 FR.01 Sales Tax Report each month. A Sales Tax Report is required even if there is no sales tax activity for the month.
The form should reflect all taxable sales activity for the reporting period, regardless of how the payment was received or recorded. This includes, but is not limited to:
• cash or check payments, typically referred to as “Cash Sales,” with deposits and revenue booked via standard journal entries or other systems.
• wires received outside of Workday Customer Invoicing, where Treasury is provided with a department’s COA for the receipt.
• credit card sales or transactions processed through a point of sale machine, departments must ensure that all taxable sales are properly accounted for and may require manual journal entries to ensure accurate reporting.
Departments are responsible for ensuring that the amounts reported on the Sales Tax Report match the revenue recorded and deposited for that month, regardless of payment method.
Departments submit the completed form online by the 10th day following the month in which the sales were made.
Related Resources
Policy 2810 Connecticut Sales Tax
Form 2810 FR.01 Sales Tax Report
Form 2810 FR.02 New Department Setup for Reporting Sales Tax
Procedure 2801 PR.01 Recording and Depositing Cash Receipts