GST - How to calculate / manage / track GST.

[Doctorcam]

* Derek Atkins (warlord at MIT.EDU) wrote:
> Doctorcam <cam at ellisonpsychology.ca> writes:
> 
> > * Derek Atkins (warlord at MIT.EDU) wrote:
> >> Ben,
> >> 
> >> Thanks for your input.  This has been hashed and rehashed on this list
> >> several times over the last year.  There is no "GST report" that sums
> >> everything for you, but if you use the business features it will
> >> compute this all for you properly.
> >
> > An accountant friend of mine advised setting up two liability
> > subaccounts, for GST Paid and GST Payable.  This seems to work very
> > nicely.
> 
> Why would these both be liabilities?  GST Paid isn't money you
> owe, so it shouldn't be a liability.

I know it looks odd.  The tree is:

Liabilities
->GST
   ->GST Paid
   ->GST Payable

GST Paid is entered as an Asset, so to speak, therefore with the sign
reversed.  GST (the parent) thus always shows the net owing.  That was
his argument, anyway, and he knows more than I do, so who am I, to
argue with it? 

Cam


-- 
Cam Ellison  Ph.D.  R.Psych. #01417

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