How do I deduct from Subcontractor invoices without deducting the amounts from their T5018?

In our company contractors are able to purchase tools and material under our accounts. We take this off their next cheque, but this is lowering the amount being reported on their T5018. How do you make deductions on their cheques  without lowering their T5018's?

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    You could treat contractors as customers when they purchased tools using your account. They are essentially buying products from you indirectly so it should be record as revenue with applicable taxes charged.

    Then doing a clearing account to 'rec'd deposits' from customer and in A/P use clearing account to 'make a pmt' for the sales invoice total. That way your T5018 amounts remains the same.

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  • 0

    You could treat contractors as customers when they purchased tools using your account. They are essentially buying products from you indirectly so it should be record as revenue with applicable taxes charged.

    Then doing a clearing account to 'rec'd deposits' from customer and in A/P use clearing account to 'make a pmt' for the sales invoice total. That way your T5018 amounts remains the same.

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