Dealing with PST, GST

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Dealing with PST, GST

Robert Smits
Hello, all.

I'm setting up accounts for a new business where I have to bill customers for
BC PST and Canadian GST, and then periodically pay the governments.

So I read as many of the old threads on GST and Double taxes as I could find
in the listserve.

I've set up under liabilities two accounts for PST and GST, and under each of
them, three accounts each for PST and GST - Billable, Paid and Remit.

I've set up a tax table called sales tax that combines PST at 7% and GST at
5%.

When I create an invoice, it correctly calculates PST and GST and puts the
correct amount in the GST Billed and PST Billed Accounts.

Now what happens when I mark the invoice paid? Where do the sales tax items
go? Is there something else I've forgotten.
--
Bob Smits <[hidden email]>
"Microsoft is not the answer. Microsoft is the question. NO is the
answer."   - Erik Naggum

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Re: Dealing with PST, GST

Derek Atkins
Hi,

Robert Smits <[hidden email]> writes:

> Hello, all.
>
> I'm setting up accounts for a new business where I have to bill customers for
> BC PST and Canadian GST, and then periodically pay the governments.
>
> So I read as many of the old threads on GST and Double taxes as I could find
> in the listserve.
>
> I've set up under liabilities two accounts for PST and GST, and under each of
> them, three accounts each for PST and GST - Billable, Paid and Remit.
>
> I've set up a tax table called sales tax that combines PST at 7% and GST at
> 5%.
>
> When I create an invoice, it correctly calculates PST and GST and puts the
> correct amount in the GST Billed and PST Billed Accounts.
>
> Now what happens when I mark the invoice paid? Where do the sales tax items
> go? Is there something else I've forgotten.

The business systems will enter the taxes as collected when you post the
invoice, not when the invoice is paid (accrual, not cash).  So long as
you don't cross period boundaries then that's fine.  If you do then
you'll need to manually adjust the entries in your reports.  But there's
nothing else you need to do per se.

When you pay the taxes to the gov't you'll need to transfer those
amounts appropriately.

-derek

--
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       [hidden email]                        PGP key available
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