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Carissa22
August 29, 2021
Question

Accounting for HST expense on financed motor vehicle

  • August 29, 2021
  • 2 replies
  • 0 views

We just purchased a motor vehicle which has 100% business use and it was entirely financed.  I think I have the loan and long term asset accounts set up properly, but how do I enter the HST that was paid on the vehicle so I can recapture in ITC's? I did put HST on the transaction in the journal entry, but it is not calculating or including that amount in my ITC report.

2 replies

PrachiJoshi
PrachiJoshi
August 29, 2021

Hi Carissa,

 

Did you use sales tax codes in the journal entry?

 

Thanks

Prachi

C
Carissa22Author
October 9, 2021

I'm not sure what you mean, in the journal entry it is showing HST on the transaction.

PrachiJoshi
PrachiJoshi
October 9, 2021

Is HST being shown at the bottom of the page or within the lines of the journal entry? 

 

 

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Nick K
October 11, 2021

Hi Carissa22.

 

Using journal entries in QuickBooks Online is one of the ways the program lets you make correcting entries and input other transactions. I'd be happy to help point you in the right direction.

 

In order to make sure your car loan was created correctly I recommend giving this article a look over to verify that these are the steps you used. If you decided to use other steps I recommend reaching out to your accountant to make sure it won't have a negative impact on your books. I also suggest reaching out to them in regards to the journal entry to verify that it's entered and going to the right accounts. If you don't have an accountant no worries, we can help. You can go to My Accountant>Find a pro to help to find one in your area.

 

If you have any questions let us know and we'd be happy to help!

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