Goods and Services Tax - GST

[Maf. King]

On Wed 21 August 13 21:21:18 Ernest Nagy wrote:
> 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
> 

Hi Ernest,

You have to manually split out the GST portion from transactions; it is only 
automatic from within the Vendor Bill (or Customer Invoice) workflow.

so if you are using A/P, set up a tax table and GC will auto allocate the GST 
to your liability account.

if it is a manual transaction, then you need an extra split line to put the 
GST bit to one side.  not that you can enter simple calculations in the numric 
box of the register - so in the UK where VAT (similar concept) is 20%, I can 
do
Expenses:Widgets	£100
VAT:inputTax:	£100*.2
Assets:Bank	           £120.00   
(sorry if the columns are messed up by email)

HTH
Maf.