| SUMMARY: How to track GST
collected and GST tax inputs using Clients & Profits. |
Recording the GST tax that you collect from your clients
and the GST tax that you pay to your vendors is a simple
process using your Clients & Profits program. At any
point in time you can easily determine your GST liability
for all posted transactions.
Once you have set up your Clients & Profits database to properly
record GST into your general ledger, you will have to input the GST
amount on each Accounts Payable and Accounts Receivable transaction.
- Create a general ledger account for the GST in your
Chart of Accounts.
You only need one account set up as a liability. Generally,
you will collect more GST from your client billings than
you will have paid to your vendors and you will have a credit
balance for this liability account. This credit balance is
the amount you owe for GST. However, if the GST tax inputs
are greater than the GST collected for some period, you will
have a debit balance for this liability account and may be
due a tax refund or credit.
This task may have any code, but GST is a simple one to
use. Whatever description you input for the task name will
appear on client invoices.
The cGL and dGL will both be the chart of accounts number for GST that
you set up in your general ledger. All other task information may be left
blank; or, if you use the group and sort features, designate the GST task
with an appropriate group and sort so that it will appear as you want it
to on your Accounts Receivable invoices.
Job Tickets
- Always enter GST as one of the tasks for the job so that
GST may be charged on the job.
You may input the GST task at any time. If you DO NOT want
it to appear on an estimate, enter the GST task after the
final estimate has been printed for the client.
Accounts Payable
When you enter invoices from your vendors, the amount of GST is input
as a separate line item. Just copy the amount directly from the vendor
bill. Every invoice for a job cost that includes a GST amount (international
invoices may not require it) will be distributed over at least two
tasks--the job cost task and the GST task.
- Choose Add New Invoice in Accounts Payable.
Enter a payable per the directions in the manual. However,
always click on the option Distribute to many jobs, tasks
so that you can enter the appropriate job cost task(s) as
well as the GST task and amount(s).
- Proof and post as directed in the manual.
The GST paid will show up on the jobs and in the general
ledger once the invoice is posted.
Accounts Receivable
When you enter invoices for your clients, the amount of GST is simply
input as a separate line item. You will have to calculate the amount
of GST manually and then input the total for the task on the invoice.
- Choose Add New Invoice in Accounts Receivable.
Enter client invoices per the directions in the manual.
However, make sure to always bill the GST task.
- Proof and post as directed in the manual.
The GST collected will show up on the jobs as billed and
in the general ledger once the client invoice is posted.
General Ledger
As soon as an accounts payable or accounts receivable transaction with
a GST amount is posted, the general ledger total for the GST account
will be updated automatically.
Use the financial reports under Snapshots or the audit trail in the
General Ledger section to see totals and details about your GST liability
at any time.
Media Accruals
If you are a C&P Pro or Enterprise user and are using the automatic media accruals
feature, make sure you pay special attention to how you handle your GST.
If you do not add your GST to your order, make sure when you add GST to
your media accrual A/P invoice that you do not reference the same order
line number twice. Otherwise, you will reverse the accrual twice for this
line number, causing your media accrual job cost and liability account
balances to be incorrect. In this case, add two A/P invoices, the first as
a media accrual A/P invoice for your buys, and the second as a job cost
invoice for the GST. Pay both of these invoices when paying your vendor.
You can add a "-1" or the like to the invoice number of the second invoice
so you know these two invoices go together. To read more about the
automatic media accrual feature, refer to the Media Accrual FAQ.
