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Bailey Custom
May 15, 2023
Question

Converting a PO to a Bill and then pay bill to log inventory

  • May 15, 2023
  • 1 reply
  • 0 views

Hello, 

 

First of all I am way in over my head 🙂

Working out of Canada.  Ordering stock inventory items from US.

I have turned on inventory tracking under products and services.

I have created a PO with our recent order.  All items on PO were received.

Converted the PO to a bill - I could see that this logged the inventory on the bill to Products and services.

I have also set up this particular supplier to be calculated in US funds and converted to CAN.  In the Items list I have adjusted all items to reflect 5% tax rate and therefore my PO matches to the penny.  

However, now that the charges for this have gone through the credit card and I have the final bill from the supplier I need to account for Freight and customs.  I thought it was ok to add these as their own items on the bill.  In doing so I can get the bill to match the invoice from the supplier.  The Bill shows the US price and the converted CAN amount which matches exactly.

Now that I am ready to pay the bill I thought I could match these through the banking section as the credit card charge is sitting there waiting to be paired up.  But it will not recognize my bill amount to be the CAN amount and not the US amount.

I have read since setting this up the QB is not the right software if I am in need of inventory tracking as it may be too simple for this job???

I am so lost right now and have no idea if I am screwing up my books with this PO to Bill issue I am having.

Any suggestions???

1 reply

T
Trish_T
May 15, 2023

Hi Bailey Custom,

 

Welcome to Community!  I appreciate the time you've spent to ensure you're recording your transactions, with the applicable sales tax, so your books remain balanced.  However, QuickBooks Online simplifies how to record Canadian sales tax that you've paid on imported items.  I'd be glad to assist!

 

Here's how to record the expense;

 

1. From the left menu select +New and then Expense

2. In the Category Details section, on the first line, select the expense account related to the purchase, in the Account column

3. For the Amount, enter 0.01

4. Enter the sales tax code that represents all tax types that apply

For example, if you paid both GST and PST on the imported goods, select a GST+PST code.

5. On the second line, in the Account column, choose the same account

6. Enter -0.01 in the Amount field

7. Choose “out of scope” for the tax code

8. Edit the fields below the Subtotal to reflect the amount of tax paid for each tax type

9. Hit Save.

That should do it!

 

Should you require additional assistance, please don't hesitate to contact us.  It would be our pleasure to work with you personally, and ensure you're able to record your transactions seamlessly!

 

If you have any other questions, please feel free to reach out again.  We're always happy to help!

 

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