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GST

We're an Australian company and one of only three nation-wide currently using C&P. Our government is introducing a Goods & Services Tax on 1st July and I am interested in the best way of tracking GST payments and credit inputs on C&P. I am also very very new to this system, so advice on how to> set these systems in place would be much appreciated.

Kind regards,

Anna Peterson, Glendinning Ratten

I believe that Australian GST is going to operate the same way that the GSTdoes here in Canada and C&P can handle it nicely. Here in the Province ofOntario we have two sales taxes, PST (Provincial Sales Tax) and GST at theFederal level. So here step by step is how I have handled these taxes.First set up a GL balance sheet account for each tax. I have used 204000for GST and 204500 for PST.Next go to SET UP>PREFERENCES>SALES TAX and enter the tax rate for Sale Tax1.: 8% here in Canada, enter GST as the description and enter the cGLaccount number, 204000 in my case. Provincial PST is entered (ifrequired) the same way as Sales Tax 2.When entering payables you click on the box "Distribute to many dGL's". Youenter the expense portion of the payables invoice on one line and the GSTcharged is entered on a line by itself using 204000 as the GL distribution.DO NOT SET UP GST AS A SEPERATE JOB TASK !!!To charge GST on your invoices make sure that Set Up window for each taskhas the GST box clicked on "X". This ensures that the GST is charged on thetotal amount of the invoice. You can do a screen print of your invoice toverify that the tax is correct since a proofing of the invoice GLdistribution does not show the tax prior to posting.Since the same GL account is used for GST postings from payables and salesthe net balance of the account is what is used to remit to the government.If you need a summary report of sales taxes associated with sales invoicesgo to Account Receivable Reports. Choose summaries and click on SalesTaxes. This report lists sales invoices for the period requested givingtaxable sales per invoice and per tax, GST & PST. This report was great togive to the PST auditor when he was here a few weeks ago. No volumes ofsales journals to go through and the reported amounts relate directly togovernment remittances.I hope this helps out. If you need clarification feel free to send me ane-mailWard

Lindsey
Cooper & Williamson Inc.

I do exactly what Ward Lindsay does except, we only have one sales tax.I, however, keep my "GCT Output" (tax on receivables payable to Gov't)and my "GCT Input " (tax on payables to be deducted from GCT output) intwo separate GL accounts. At the time of payment to Gov't I run a trialbalance that gives me an ending balance for both accounts for thatperiod, subtract GCT input from output and end up with my balance.To clear the liablity, simply write an Overhead check, credit and debitboth accounts so tat they end at zero fo rthe period you are paying for.Ditto: DO NOT SET UP GCT AS A SEPARATE JOB TASK...IT IS NOT AN EXPENSEOR A JOB COST, BILLABLE OR UNBILLABLE. It will cause inaccurate info tobe given of your job profiitablity reports and snapshots. (Been there,done that)I also would not recommend adding the tax collector as a vendor.

Sebastian Ogden
Quantum Communications

If you claim back on your GST then I can help you. I have the same situation in Jamaica.

Sebastian Ogden
Quantum Communications

Anna,

We set up a task ("http://www.clientsandprofits.com/sales Tax Payable") in the task table, which credits to the G/L liability account "http://www.clientsandprofits.com/sales Tax Payable" when used on A/R invoices. You can set up the applicable government agency to whom you remit these taxes as a vendor, with the G/L debit to that tax payable liability account and either enter a "vendor" invoice or make a direct disbursement to that vendor to clear the liability. Creating a vendor invoice every time you have to remit taxes would be preferable, as you would have a record of all remittances on the vendor's account ledger, which you access by File>View Account Ledger when you are in that vendor's screen.

Hope this helps. If you want more particulars, just e-mail me.

Mary Beth Harris Controller Interactive Marketing Group, Inc.

We followed the instructions as per C&P's FQA by adding GST as a Task. The issue that we have now is GST is now being added to the docket summary reports and and is giving us a false GP value. Has anyone found a way around this issue who is using Job Tracker only. Also QST calculations has caused us some issues in calculating it correctly given it is a tax on base +GST.

mark romero-marshall