Accounts Payable Tutorial

GST Tax Table Setup

How to set up tax table in Sage 50

from home screen drop down Setup menu – Settings – Company – Sales Taxes.

settings

First, lets click on taxes.

Settings TaxesIn the Tax colum you can give unique tax names.

Ex: GST, HST, PST depending on the province.

indicate the account number that will be tracking this tax.

For payables account description “GST on Purchases”

and receivables account description ” GST on Sales”

These two accounts should already be setup in the chart of accounts in the liability section.

Ex:

account 2410   Description  “GST on Purchases”   ( for type choose the subgroup account)

account 2420   Description  “GST onSales”    (for type choose the subgroup account again)

Account 2430   Description  “Net GST Remit / Refund”    (for type choose subgroup total)

now, lets click on Tax Code

Settings Tax CodesThe code section is designated for your taxable goods.

ex: GS   and in the description section type:  GSTon Sales

GP and in the description section type:  GSTon Purchases

GV – and in the description section type:  GST on Vehicle – if you are a company that uses a percentage of the vehicle for business and rest for personal than you have to take a percentage of GST as well. do not claim the full amount of GST when the vehicle is being used fa portion of time.

GM – and in the description section type:  GST on Meals – Themeals are expenses at 50% so the GST has been claimed at 50%.

in the USE In Colum – indicate if its for Venor purchases or sales receivable.

 

Now lets click on the first code “G”

Tax Code DetailIn the tax colum you will put GST or PST, the name of the tax.

Status is Taxable

Rate is 5% or other rate depending on the provice

Included in price will be “yes” if its for tracking vendor taxes

it will be “No” if its for tracking sales tax

Is refundable will be “Yes” for GST and will be “No” for PST

Hope this helped with setting up tax tables.

Please send me note if you need further explanation.

 

 

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Overpaid Supplier Invoice

Sometimes we might overpay a supplier.

To correct and record a credit on supplier account see below:

Open purchase journal:

Purchase Journal Credit

As you can see the amount of $-30.71 is shown as negative. The invoice number is refereeing back to the original invoice with “overpay” as an indication to an error.

The account is the expense account normally used for this supplier.

Keep checking back for more tutorials or email a help question.

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