Record Fixed Asset with Canadian Sales Tax
Hello,
Product: Quickbooks Desktop Pro
Location: Canada
I am trying to record a fixed asset purchase, computer equipment paid by credit card, but also account for sales tax (HST).
Have created the fixed asset account (and associated depreciation account for later use) for the item.
As I understand it, the full acquisition cost of the asset should be recorded in the asset account, including taxes, freight costs etc. For example, equipment was $100 + 13% HST, so asset account should show $113 as cost.
When recording the purchase, how do I setup the transaction, either through the credit card purchase screen or general journal? The problem is the sales tax amount. I need to record full asset cost, but at the same time have the $13 included in the sales tax report. Typically, on that purchase screen we enter the expense value as $100 and HST column calculates the right amount and will update the HST account. Total expense to vendor is correct ($113), the asset cost is recorded at only $100, and HST account adds the $13. The tax amount does not get included in the asset cost. It is treated like a regular expense transaction.
On the same purchase screen, if I manually remove the HST amount, change the item cost to $113, this will record the correct asset value in the asset account, but now there is no HST accounted for in the HST account.
I have read through many support Q&A, and watched the youtube videos, but they don't mention how the sales tax can be separated, yet have the full asset cost still be recorded.
Thank you for any help.