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P
PatP
October 23, 2020
Question

GST on JE regarding real estate

  • October 23, 2020
  • 1 reply
  • 0 views

I have started doing books for a company that is doing some land development and selling lots.  THe previous bookkeeper entered a large JE for each lot that was sold. 

She would enter the amount of the lot, the fees from lawyers, GST, commissions etc all on one JE.  So I am doing the same to be consistant.  Now today I wanted to get the GST remittance ready and Quickbooks does not seem to like the GST on the JE.  Wondering if there is a better way to handle this situation.  The JE is dated the date of possession of lot - when we get our money, as per our accountant.  Our accountant is also new and has not worked in QB as much as me.  So I am reaching out here for some guidiance.  Should someone know how to handle this.  Could I get your email or phone # so I can reach out to you?  Or can you instruct me on this chat.

Thanks!

1 reply

L
LauraAB
October 23, 2020

Hi there PatP,

 

I know taking over the set of books that someone else was working on can be a challenge and appreciate the thought of keeping things consistent. Thanks for sharing all of these details. Knowing these, I can shed some light on the sales tax portion of journal entries in QuickBooks Desktop so you can decide how to best move forward.

 

Working with journal entries and sales tax can be a bit tricky as it involves entering the journal entry as its own line and mapping it to the appropriate tax line for your remittances. When this is done correctly and the sales tax codes are set up correctly and to the proper agencies in the Sales Tax Centre, it should calculate to your sales tax remittances. You can review how the tax codes are set up by following these steps.

  1. Select Lists from the top menu.
  2. Choose Sales Tax Code List.
  3. Double click the item you'd like to review.
  4. Make changes as needed.
  5. Select OK.

Another way to review the sales tax items is in the Item List, which is also accessible via the Lists menu. Again, you can double click the on you'd like to review and make changes as necessary. It's in the Item List that you'll be able to see the sales tax agency the code is assigned to. The default codes set up in the company file should be mapping correctly, but it doesn't hurt to check.

 

Even with that in mind, I always recommend working with the other built-in features for entering sales and expense transactions to keep the sales tax portion simple and so you can have confidence it's calculating correctly. The other forms in the program are designed to take care of the sales tax mapping for you when you simply select the code you need to associate it with the line item.

 

Given the type of transactions you're trying to record, it may be best to check in with another QuickBooks-savvy user to see if the built-in forms can meet your needs. It may be that the journal entry was the best method the previous accountant found to make sure the books were balancing as needed and that's why they've gone that route. Other users in the QuickBooks Community may chime in with some advice for you, though, so keep an eye out just in case.

 

It's also worth checking out the apps that can connect with QuickBooks Desktop. There may be a management app that can help with these kinds of transactions to create a smoother process for you. The Apps for QuickBooks Desktop page lists all apps that connect with the program and you can use the search bar to narrow down the options. Keep in mind this page has apps for both Canadian and US QuickBooks Desktop, so it's worth verifying with the app developer via their contact info listed if it's not clear if the app connects with the Canadian edition.

 

I'm wishing you the best with recording these entries in QuickBooks Desktop! Don't hesitate to stop by again. :) 

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