Re Handling GST & PST from Credit Card transactions

[Doctorcam]

* Derrick Ashby (daeroncs at fastmail.fm) wrote:
> Russell,
> 
> I agree that GST is a bit of a pain in gnucash, but it is do-able.  You 
> have to create the split transaction yourself.  This is easy if you 
> regularly deal with only a few vendors, since gnucash defaults to the 
> last transaction you did with the same description.  You then only need 
> to balance each transaction where the amounts are different.  I 
> personally use a little spreadsheet to calculate the GST / Ex GST split, 
> not having previously twigged to the fact that gnucash accepted formulas 
> in amount fields.  If you desperately need to capture vendor information 
> other than via the description line, I guess you could create a 
> subaccount for each vendor, although that could become a pain if you 
> also have lots of expenses accounts. 
> 
> From a business point of view, if you are claiming GST back from the 
> government, don't listen to the people who tell you that it goes in a 
> Liability account.  Claimable GST is an asset.  Non-Claimable GST is an 
> expense.  GST paid to you by a customer is a Liability, because it's not 
> your money - it's the government's.

Of course it's an Asset.  However, you need to know how much you
actually owe.  When you set it up as a contra Liability subaccount, at
the same level as the GST you charge, the parent account gives you the
net, without your having to calculate it.  Any GST my business pays out is
claimable - that may not be the same in Australia.
  
> Down here in Australia we are able to use cash accounting, so I in fact 
> have two GST Liability accounts - GST Collected and GST Receivable.  GST 
> Receivable is the GST that I am required to collect once the invoice 
> gets paid (this is processed automatically by gnucash), and GST 
> Collected is the money that has actually been collected.  This requires 
> me to remember to do a transfer from the one to the other when I process 
> a payment!

We cannot - once it's invoiced, it belongs to the government, though
they allow you to pay at specified intervals (quarterly, in my case).
Simpler, fortunately, but a drag if the customer doesn't pay up in
time. 

Cheers

Cam


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

Cam Ellison & Associates Ltd.
Management Psychology

RR 22    3446 Beach Avenue
Roberts Creek  BC  V0N 2W2

Phone: 604-885-4806
Fax:   604-885-4809