Entering sales tax paid for an expense as a separate expense
Hello,
We purchased an inventory item (trailer) from overseas and imported it into Ontario, Canada. The invoice and payment for the item to the foreign seller does not include sales tax (HST). We are charged GST from our customs broker and PST from MTO/Service Ontario. We have 3 separate expenses to enter but it will not allow me to enter the HST/PST/GST paid to my ITC's on a line item in my expense or bill entries.
For example:
Invoice001:
Purchase Price of trailer: 10,000.00
0 HST paid to foreign seller.
Invoice002:
Import fees : 300
5% GST paid towards invoice 001: 500.00 <need to apply this to my ITC's not as a line item under inventory.
HST paid on invoice 002: 39.00
Invoice003:
Licensing/ownership fees: 32.00
8% PST paid towards invoice 001: 800.00
No HST charged on the $32 by MTO.
The current method I have found in this community and by searching online is to edit the HST at the bottom of the expense to reflect the HST paid and it will apply it to my ITC's.
The problem with this is that if you were to touch one of the line items in the invoice it will recalculate the HST without prompt. So if someone else in the company were to go in to make a correction or something to the invoice and not have that receipt on hand they will have to find it to match the calculation. and what if they didn't notice it before making an adjustment and saved, that would be thousands of dollars in ITC's gone.
I understand its rare for someone to be going in an editing an already posted expense but the fact this possibility exists makes me uneasy. Maybe there was a typo and when corrected it would cause a massive asset loss.
Is there a better way to do this or has QuickBooks completely overlooked this issue? I could imagine the same issue would arise from any business' buying items privately and paying HST on ownership transfers in Ontario.
I have only been a customer of quickbooks for a handful of days and to find this problem not being addressed is extremely disappointing and makes me question if quickbooks online is just for self employed subcontractors with extremely simple books.