How to pay a Sales Tax invoice?

[Nelson Handcock]

Hi,

I'm using GN 2.6.12....

I've just started using the Sales Tax Tables feature for the first time,
and I've found the online forums on the subject quite helpful, but I just
can't quite get my head around the complete picture - I'm hoping I can get
some extra advice to fill in the gaps.

FWIW - this is the link I found that seemed to have most information.

http://gnucash.1415818.n4.nabble.com/Sales-Tax-with-GnuCash-td1435137.html


I have a GST Liability Account that has a "Tax on Purchases" and and "Tax
of Sales" sub-account, and the net Tax payable amount is showing on the
parent GST Account.

I have posted invoices from suppliers and customers, and I can see the tax
split amounts in the GST accounts. It looks correct - if I have $1000- in
Tax on Purchases and $600 in Tax on Sales, the parent account shows a
balance of $400-.


This thread has a comment "So now you have a tax liability automatically
created in which you can pay whenever you need. Just move your funds from
the relevant asset account to extinguish the liability. "

It's this part I am having trouble understanding. I have to pay the Tax
Department the balance of $400.

Do I make manual adjusting entries? Or have I got the account settings
incorrect - should I be using the GST liability account directly in the Tax
Dept invoice?

When I create an invoice for this, I can only post the invoice liability to
an Accounts Payable account - my GST account is not included in the list.
If I use the GST parent account as the Expense Account, the overall balance
increases to $800, rather than showing a balance of zero.

So if I use a different Expense Account then the net liability in my GST
account still shows an outstanding balance of $400.

When I pay this invoice it was debit my income account and credit my main
liability Accounts Payable... But this still doesn't show anything in the
GST liability accounts.



So I'm hoping for some guidance in how to correctly pay the tax invoice and
have the payment also reflected in the GST Liability account.

Thanks in advance for any guidance that can be provided....!


Nelson