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kebabthyme
Level 1
posted
‎August 18, 2019 06:47 PM
last updated ‎August 18, 2019 1:47 AM

UberEATS GST component

I am having a problem on how to add an extra GST component.

for example, we use UberEATS as our delivery partner for our store.

Each week they pay us our sales less their fees and percentage.

This is a breakdown of one of their weekly payments to us:

Total Weekly Sales $4,420.15
UberEATS Fee -$1,547.49
Net Sales $2,717.73
UberEATS Marketplace Adjustment $244.94
GST on UberEATs Fee -$154.93
Miscellaneous $0.00
Order Error Adjustments - week of 6/24/19 $0.00
Order Error Adjustments - week of 6/17/19 $0.00
Total Payment $2,962.67  (THIS IS WHAT IS PAID TO US)

What we see in quickbooks is a bank transaction of $2962.67 credited to our account.

What i need, is how do I add/capture the $154.93 as a GST component, in order to reduce my quarterly GST obligation. This roughly equates to $1000 per month which i can reduce my GST obligations by.

I hope this makes sense.

Thanks

Mark.
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1 Comment 1
Rajanikanth
Level 6
‎August 18, 2019 11:01 PM

UberEATS GST component

Hi, Mark

Since food products, GST is 5.5% check!

GST need be paid on total Net Sales ( excluding GST component )  that is 

Create an Invoice for Total Weekly Sales $4,420.15 ( Gross Sales including GST component )

GST Component is $4,420.15 / 105.5 * 5.5 = 230.43 as GST 5.5%

Note: UberEATS Marketplace Adjustment $244.94 I am not sure about this adjustment if it is Sales GST needs to be paid & invoice is created instead of Sales receipts

 

Then create a bill for 1,547.49 ( assumed Net amount i.e excluding the GST compnent 10% )

GST on UberEATs Fee -$154.93  ( 1,547.49 * 10% = 154.75 due to average/round off error so you enter as the GST on UberEATs Fee $154.93)

 

Now post a journal entry to offset UberEATs fees i.e 1702.42 and apply the credit to the Customer

Debit  Accounts Payable select Vendor Name  UberEATs

Credit Accounts Receivable select Customer Name ????? ( if many customers then create a customer called Retail Customers )

Apply the credit to the invoice which will reduce the amount customer owes you.

 

Comment back for further clarifications / to discuss.

 

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