Goods and Services Tax - GST

[Ernest Nagy]

Hi

I love the program and the ease of use with one major exception, how to handle the Canadian GST

While I’m not an accountant, I do know that the GST paid on purchases which is called the GST ITC (Input Tax Credit) is what is owed to you by the government as a credit to your purchases/expenses.
The GST charged on your sales invoices is a liability because this is what is owed to the government. The two offset each other when reconciling and paying the government your final dues.

I have created a GST collected liability account and a GST ITC asset account.

When I enter a transaction for expenses, I get an imbalance. Is this right? How do I offset this imbalance?

Thanks for your help

Ernest Nagy
Your Logistics Solutions consultant
Vancouver, BC
604-559-7686
www.logisticssolutions.ca