[GNC] Modelling employee expenses

Matthew Pounsett matt at conundrum.com
Tue May 22 19:40:16 EDT 2018


On 22 May 2018 at 19:36, Adrien Monteleone <adrien.monteleone at lusfiber.net>
wrote:

> Sales Tax on sales is *not* an expense or revenue. You shouldn’t need to
> balance it against anything. It’s a pass-through liability.‡ It should have
> no bearing on your books other than you have to collect it and remit it.
>

Sales tax on sales is a positive liability that needs to be paid to the
government.  Sales tax on purchases is a negative liability that offsets
sales tax on sales, and reduces the amount payable to the government.  So,
I need to track it.


>
> Note, if you are in a VAT jurisdiction and you are reimbursing for
> services, product or materials that will be resold/incorporated into a
> final product, then you have a complication with tracking the VAT paid on
> those expenses. (which there is another thread on the list in the last 3-4
> months about as I mentioned.)
>

Yes, exactly.  See above.


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