Does anyone have a good overview of which accounts are hit when using tax module to record and pay GST/HST?
Hi all,
Does anyone have, know of or possess good working knowledge of how and which accounts are used by QBO when recording and paying GST/HST?
So, for example:
- When I post a bill or expense and enter amount for GST, does this debit some ITC collection account and credit the GST liability account?
- When I post an invoice and add tax, does that debit a GST collected on sales and credit a GST payable liability account?
- When I use the tax module to file my retursn and record a payment, does recording the payment debit the GST payable and Cr the cash?
Admittedly some of these questions are pretty basic and straight forward. What I'm after is the affirmation of it all and someone/some spelling out document actually which accounts are automatically set up by QBO as well as triggered by the software when the various inputs into the module are used (i.e., Tax input cell in expense/bill/invoice/bank downoads screens). I've been using QBO for a while but tbh never come across an infographic or bullet-pointed explanation(s) and/or answers to what I've posted above.
It's become more important to me just recently because of what I'm seeing in QBO nowadays; (what I perceive to be) duplicate ITC accrual and tax liability accounts created to track GST/HST ict's and remittances in the sense that these accounts are being used and lines of JEs added (creating extra work imho) while QBO's tax module goes unused... From a bookkeeping standpoint something doesn't smell right.
Looking forward to your replies! Thanks in advance for taking the time to respond.