ok - so I finally figured out how to paste screen shot. The secondary box is the Journal Entry display to show how the GST is calculated. In this case we use the GST Paid on Purchases account nbr and not the GST adjustment account nbr. Also since I am not claiming the PST back it is showing as an expense. But since you are claiming the QST back then you should just enter Gst only tax code and then another line for the QST amount against the QST account nbr.

Hope this explains it? Let me know.

I have the same situation as Marc does. However, if I enter Gst charged on imported goods without a tax code, the tax report won't show those GST amount. Therefore, the gst paid on purchase amount is greater than the tax report amount. Is this normal like this?

For example, the gst paid on imported goods is $100, I have the Gst paid on purchase account $100,but tax report will show $0 Gst paid on purchase.

Thank you for your help.

Hello MTLFALL,

It shows on my report. I do the following steps:

- Reports /Financials/Transactions by accounts

- Enter the dates for the period covered and select

1. GST/HST charged on sales (Acct# 2310)

2. GST/HST paid on purchase (Acct# 2315)

3. QST Charged on sales (Acct# 2340)

4. QST Paid on purchase (Acct# 2345)

- Hit OK

Last amount reported in the balance column indicates what you paid and charged in each category. Substract what you paid from what you charged and voilà.

When recording GST paid on imported goods, I put Acct# 2315 and no tax code. For advanced clearance fees, I use acct# 5180, put in the amount and GQ (GST and QST) in the tax column.

Hope this helps.

Cheers,

Marc

Personally I never use the Tax report because if you fail to use a tax code at any time, it doesn't show and if you post something in a previous period, it will not show either.

This is how I have always done the entry.  On the second line use Ctrl-Y to add the tax amount of $100.  The tax report detail section is below if you really need to use it.  Use an appropriate description for what you want to see in the future to explain the tax.

Hi Marc,

Thank you for your reply. I was confused by the inconsistency between the amount on  Gst paid on purchase account and the tax report amount. The method you provided works fine, but as long as you dont put a tax code on the Gst paid on imported goods, you wont be able to see this amount on tax report.

I have tried Richard's method also, it worked fine. Now the 2315 Gst paid on purchase account is consistent with the tax report amount!

Problem solved! Thank you guys!

Mina

Hi Richard,

Interesting. Thank you for your reply because you "may" just have enabled me to find a HUGE discrepancy in my financials.

I used FedEx for all of my shipments. This represents the bulk of my expenses. I went trait to Payment and entered the FedEx invoices as an expense. Thing is, by doing this, I have no control over the ta amount as you know I'm sure.

After reading your reply, I created a spreadsheet and I'm entering all of my expenses with a special focus on both imports and shipping expenses. The difference between what I have in my spreadsheet vs the financial report is staggering. The SAGE report shows a LOT less than what I actually paid!!!

Guess I'll have to void all the invoices I entered and recreate them...

Question though, when comes time to remit the taxes at the end of the quarter, how do you go about getting the totals of what you paid versus what you collected. Please do not tell me this needs to be done manually, does it?

MarcDu said:

Question though, when comes time to remit the taxes at the end of the quarter, how do you go about getting the totals of what you paid versus what you collected. Please do not tell me this needs to be done manually, does it?

MTLFALL took this off forum and sent me a private message.  This is what I sent back.

Richard S. Ridings said:

I always print the Balance Sheet as of period end to see the totals and to post the purchase invoice from.

I print the General Ledger reports (Transaction by Account) for the GST Accounts for the full period.

I print the Income Statement for the period for the Total Revenue.

I keep all reports with the working copy of the remittance form.

When I post, I create a purchase invoice as a recurring entry.  Vendor is Receiver General - GST.  Date is the last day of the period.  The accounts are the GST accounts and I enter the dollar amounts as I see them on the Balance Sheet (positive and negative as they appear).

For the invoice number for the period ending Sep/14, I use Jul-Sep/14 so I can see at a glance in my Vendor Aged Detail reports which period the entry is for.  I date the entry Sep 30/14 so the General Ledger reports for the next perod start at zero again.  When it is paid, I post the payment in the Payments module on the date of the payment.

Should have been "For the invoice number for the quarterly period ending Sep/14..."

I don't know why your numbers are off.  It also depends on if you are using the Duty part of the program to add the charges to the inventory as landed cost as well.  Before you start voiding, I would take a break and go back and look at the journal entries again and trace them to make sure they really are incorrect.  I just checked using Make Other Payment which I assume is what you mean when you said

MarcDu said:

...I went trait to Payment and entered the FedEx invoices as an expense. Thing is, by doing this, I have no control over the ta amount as you know I'm sure. (sic)

And I got the same journal entry by doing the same thing.  I never use Make Other Payment, but it looks like it works the same to me.

Without seeing your entries, I can't tell you what might be wrong, but don't forget the GST paid is not an expense (5000 account), it is a liability (2000 account), so please check the original journal entries in the program against your data entry in the spreadsheet to make sure you have the same thing in both places marked as expenses.

And I should have mentioned that you can always use the File, Import/Export, Electronic Filing, GST/HST Online Filing option.  You do not have to go ahead and actually file it online that way, but you can get the GST34 report printed and I believe post the entry as well.

This option will pull the data from the General Ledger reports, not the Tax report.

Richard - your method of processing remittances is exactly what I do too - clients complain about the amount of paper used but it is done anyway - there is no shortcut taken and is invaluable for CRA audits to back up what you have done. This is how everyone should be documenting ALL their remittances - whether for GST/HST, PST, QST, Source Deductions, and WCB (or WSIB).

Hi Richard,

First off, my apologies for the typos in my previous reply. My keyboard is dying on me...

Here's a print screen of how I enter my expenses. Be it FedEx, car lease, cell phone or others

As I indicated in my previous reply, when entering expenses this way, there's no way for me to have control over the tax amount as it is calculated automatically

If you don't see much of a difference in your reports, guess there's something else I am doing wrong here. Any pointers?

My notebook no longer has a "Y" key and it's a real pain.

I did the same entry in Make Other Payment as I did the first time and I can control it with Ctrl-Y after I enter a tax code as I indicated.  My file has more than two taxes though, so I have to use Ctrl-Y.  You only have GST and QST so you should be able to click in the columns and change the numbers.  If not, try Ctrl-Y.

The image below shows the taxes for the total invoice, not the line item, for the entry you just posted.  Please also be aware in this test file, I have GST and QST being sent to the same accounts so the journal entry shows them both combined.

I'm not sure why you are not able to reproduce this, unless I have the entry concepts wrong.  However, regardless you should have a $40.01 expense just as I do because otherwise your journal entry looks ok to me.

Total amount of the FedEx invoice' I received is $280.41 which is what you saw in the print screen I put in my previous reply. Here's the actual breakdown as per the FedEx invoice

GST Canada:  $234.41

Advance clearance fee: $10.00

GST charged on clearance fee: $2.00

QST charged on clearance fee: $4.00

Since this was entered in Other Payment, I went back in it, edited the entry and noticed that, as you can see,  I can indeed skip the amount column, enter G as the tax code and then the GST amount.

Now I just have to figure out what I was doing previously that was preventing me from doing this. After I do, I will edit all previous entries and do the same with them. See what kind of result I get and compare with the spreadsheet I'm working on

If I get funky results, I'll just restore everything using the last backup I did

Seems to work as it does show in my report with the same total still

Marc

Seems to work as it does show in my report with the same total still

Marc

Marc

Please make sure you do a backup before you do anything and please make sure you pay attention to details or you may make things worse.

In my example, on the first line, I did not use an account, you did, but you don't need to.

You also indicated $234.41 + $10 + $2 + $4 = $281.41.  I just don't see it.  It's missing $30 because you entered $40.01 not $10 in the entry.

The only reason to go back and fix anything is to make sure it is correct.  Based on what you have shown me (other than the missing $30, the expense is correct and the tax is correct, so do you really need to go back and adjust?  Do you really need to change your data entry method?

I only jumped in here to help MTLFALL make sure the entry showed on the Tax report because Smithco's option would not allow for that due to a lack of tax code.  Many people are not aware of the technique I used above so I thought it worthwhile mentioning it.  However, it is up to you if you wish to adjust the past.  Make sure that if you go back to previous remittance periods, the absolute remittance numbers should not change.  I'm not sure it's worth the work if it is a lot of entries when there are other methods of determining the proper tax to remit.