How to enter "Expenses incurred as an Agent" or Billable Expenses to properly account for HST
I act as an agent when incurring certain expenses
I want to understand how to properly enter these types of expenses on an invoice while also reconciling my credit card balances
example
I rent clothing from two designers, both charge $100 and I style my client with those clothes for a service fee of $300
one of the designers doesn't charge HST as their business is not big enough and so they are exempt
I have two invoices from the designers, one for $113 and one for $100
when I charge my client this is how I want their invoice to look like:
My Fee: $300
HST: $39
Expenses:
Designer A: $113 (100+13% hst)
Designer B: $100 (no hst)
total: $552
but I want to make sure that at the end of the day I am only collecting $39 in HST and not claiming any HST paid on the expenses
how do I properly enter this in Quick Books