B.C. For expenses I was told to manually change each of my totals to exclude the pst...then from there only claim gst. Is there an easier way to go about this?

Seems like a ridiculous process to go in and manually change every total of every expense to exclude the pst? I was told that it was necessary as you can’t claim pst on expenses...only gst. It doesn’t make a lot of sense to me as there is the “gst/pst” button on QuickBooks and you’d think QuickBooks would just do the math for you. Could anyone explain this further to me, I’m from AB and not use to dealing with pst. 

Answer

1 person found this helpful

I'm afraid you've been ill advised on this matter.

1.  No, you can't exclude PST from your transaction as it becomes part of the expense you can claim against income.  Well, you can exclude it if you want, but then your expense are understated and your Net Profit will be too high, triggering business tax consequences.

2.  If you've set up your tax items correctly, you can enter the full transaction by entering the pre-tax amount to your expense account and choosing both GST and PST buttons, which will automatically calculate in Quickbooks.

3. If PST on purchases has been set up to track in a separate expense account, you will find the amount of PST for your transaction in that account, for example, an account called 'PST Expense'.

4.  If PST on purchases has NOT been set up to track in a separate expense account, then it will automatically track to the expense account in your transaction.

Was this answer helpful? Yes No
Default user avatars original
Rochelley , Accountant
1 additional answer

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.