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Debra65
March 31, 2021
Question

Sales tax paid on Licence fees/Storage charges

  • March 31, 2021
  • 2 replies
  • 0 views

When receiving cheque for crop income, there are deductions on it for licensing fees and storage.  These deductions, also, include HST that is paid.  

I have been posting as RECORD DEPOSITS; however, I directly access the HST account for the amounts paid out as per the cheque.  I have, also, tried doing this under General Journal and, again, directly access the HST account with warnings.  

Getting ready to file my Sales Tax return and these HST amounts are now under UnAssigned.  

How do I post the cheques received for crop sales when there is HST-allowable deductions on it?

2 replies

J
JamesM4
April 1, 2021

Hi Debra65,

 

It's vital you're able to post the received cheques the right way so you can keep your books accurate. I'd be happy to steer you in the right direction so you can focus on doing the things you enjoy. 

 

To ensure accuracy in your books, I recommend contacting an accounting professional to get expert advice on how to post the transactions. 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. Let me know if you have other questions. I'm here to help.

LeithG
LeithG
April 1, 2021

Hi Debra

 

I come from the QuickBooks online world, but hopefully there's a similar setup in the Desktop version.  Presumably these checks are in relation to invoices you're sending out?

 

1. Record the payment: from the customer, record the payment receipt to "Undeposited Cash" in the full amount of the invoice.

2. Create a new deposit to your bank account for the check, and tie it to the 'payment receipt' from your customer; at this point you should be able to adjust the deposit by adding additional lines for expenses - wire fees for example, but in your case the licensing and storage fees, for which you should be able to specify their taxable treatment.

 

As I say, this is based off of my QBO world, but hopefully it helps!

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