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Carissa22
July 6, 2022
Question

How do I enter equipment purchase so I can recapture the GST?

  • July 6, 2022
  • 1 reply
  • 0 views
I have two purchases both of which have associated loans and both of which I need to recapture the ITC.  I know how to set up the loan and create cheques to record payment of principal, but I don't know how to record the actual purchase so that it will calculate the ITC that I need to claim.

1 reply

J
JamesM4
July 6, 2022

Hi there,

 

Thanks for contacting us here. QuickBooks is a hassle-free program that simplifies the way you manage your accounting. I'll be glad to point you in the right direction so you can achieve your QuickBooks goals. Recording your transactions the right way is a good exercise for keeping your books accurate.

 

Based on what you've described, I see you're following the right steps for recording your invoices. To ensure accuracy in your books, I recommend contacting an accounting professional to get expert advice. Doing this will help prevent any future discrepancies in your books. You can also reach out to accounting professionals on our site using this link here.

 

I'll also leave this question here so other accounting professional members can chime in and share their expert advice. Let me know if you have other questions, I'm here to assist.

C
Carissa22Author
July 8, 2022

I tried entering the expense using the excavator loan as the payment account and a CCA account as the category, but it will not allow me to use CCA as an expense category. If I put it in some other category it’s going to show as a current expense which isn’t correct, it’s a long term asset purchase. 

T
Trish_T
July 8, 2022

Hi Carissa22,

 

Thanks for reaching back out.  QuickBooks Online provides the flexibility you need to track the current value and depreciation of your assets.  I'd be happy to provide more information so you're on the right track with your work!

 

Here's how to set up an asset account;

 

1. Open Settings ⚙ and select Chart of Accounts

2. Click on New

3. Using the Account Type ▼ dropdown, select Property, plant and equipment

4. From the Detail Type ▼ dropdown, select the option that closely describes the asset

5. Give the account a name, then select the Track depreciation of this asset checkbox

6. Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank

7. When you're done, select Save and Close.

 

QuickBooks Online won't automatically calculate the depreciation, so you'll need to track it using journal entries.  Here's a helpful guide for your reference.  

 

Should you require additional assistance, please reach out to your accountant.  

 

If you have any other questions, please don't hesitate to reach back out.  We'd love to help!

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