How to pay a Sales Tax invoice?

[Nelson Handcock]

Hi,

Bumping my question - still stuck with this....

Thanks & Regards,

Nelson Handcock
0409 149919

http://www.linkedin.com/in/nelsonhandcockaustralia

On Sun, Jan 22, 2017 at 7:37 AM, Nelson Handcock <nelson.handcock at gmail.com>
wrote:

> 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
>