Projects not including sales tax
I am doing the bookkeeping for a Canadian charity, and one perk of charities is that they can claim half of the federal sales tax paid in expenses. What I've done to track this is created a group sales tax called 'NPO Purchases' that is divided into two taxes of 2.5% each. Whenever I add a bill QBO automatically separates the GST paid, and I can apply for a rebate after fiscal year end.
As a charity our funding is defined by a number of contribution agreements which I track with the QBO Projects feature. I've encountered a problem where one half of the tax paid is not accounted for in the Project expenses - the bill will list the full amount but the Project will be short that 2.5%. For example, a bill for $100 will list as $105 in total, but on the Project expense report it will only list $102.50.
It is irrelevant to our funders that we are claiming the GST back in our annual filing, as the full GST is an eligible expense in the contribution agreements. Is there a way to make sure that all the taxes paid are included in the Project expense tally?