MYOB and Canadian GST

[p***@uwo.ca]

Although I do a lot of work in finance I haven't touched accounting
since an undergrad course many, many years ago--long before GST.

I am having difficulty understanding how MYOB is handling GST. If I
create a small test account and post a new purchase of $600, for
arguments sake, with only GST and charge to American Express, the
Amercian Express liability account is debited for $600 and GST Paid for
$42--fine (well, not so fine at payment time, maybe)!

Now if I go to the bank register and pay American Express from chequing
and enter the original vendor card I get a message saying "If the
cheque you are entering is a payment for a purchase that you have
recorded in Accounting Plus, you should be using 'Pay Vendrors" instead
of "Spend Money" (incidentally if I do this the payment goes through to
the vendor not the credit card) but ithe full amount of the original
purchase is credited to the American Express account. However, since
only $600 was debited to the card in the first place this leaves a
credit of $42 after payment.

If I don't enter the vendor card in the bank register window when I
make the payment, I avoid the error message but the end result is the
same--a $42 credit on the card if I pay the full amount (purchase price
+ GST) that the credit-card company will invoice.

I know MYOB has to keep track of GST but one gets invoiced for price +
tax and that's the value one writes a cheque for. So why does MYOB
insist on not debiting credit-card accounts for GST.

I realize this is probably sublimely obvious but it's not at all
obvious to me at the moment. Could someone please clarify!

Thanks!

[Farmer's Daughter]

"Pay Vendors" and "Spend Money" - - - Get a real Accounting system.
Terminology like Pay Vendors and Spend Money indicates Mickey Mouse
accounting software. If you are in the USA, get PeachTree or in Canada, get
Simply Acctg.. Get away from these Kindergarten accounting packages.
MCG

Post by p***@uwo.ca
Although I do a lot of work in finance I haven't touched accounting
since an undergrad course many, many years ago--long before GST.
I am having difficulty understanding how MYOB is handling GST. If I
create a small test account and post a new purchase of $600, for
arguments sake, with only GST and charge to American Express, the
Amercian Express liability account is debited for $600 and GST Paid for
$42--fine (well, not so fine at payment time, maybe)!
Now if I go to the bank register and pay American Express from chequing
and enter the original vendor card I get a message saying "If the
cheque you are entering is a payment for a purchase that you have
recorded in Accounting Plus, you should be using 'Pay Vendrors" instead
of "Spend Money" (incidentally if I do this the payment goes through to
the vendor not the credit card) but ithe full amount of the original
purchase is credited to the American Express account. However, since
only $600 was debited to the card in the first place this leaves a
credit of $42 after payment.
If I don't enter the vendor card in the bank register window when I
make the payment, I avoid the error message but the end result is the
same--a $42 credit on the card if I pay the full amount (purchase price
+ GST) that the credit-card company will invoice.
I know MYOB has to keep track of GST but one gets invoiced for price +
tax and that's the value one writes a cheque for. So why does MYOB
insist on not debiting credit-card accounts for GST.
I realize this is probably sublimely obvious but it's not at all
obvious to me at the moment. Could someone please clarify!
Thanks!

.

[Stephanie Serba]

First, you need to make sure whether or not the check box in the upper
right, Tax Included, is checked. If it is, then you need to uncheck it. When
you are entering your purchase, you need to select your tax on the same line
as your expense amount, or no tax will be calculated.

You cannot select a vendor if you are entering using the Purchases journal
directly to your credit card. You must select your credit card. Then you Pay
Bills from your bank account.You do have an alternative to that, however.

*IF* you want to enter your purchase to your vendor, eg. Shell, you do so
through the Purchases Journal. When you Pay Bills, make sure you select your
credit card Liability account to pay from, instead of your bank account.
This transfers the liability from the vendor to the credit card. Then you
Pay Bills to pay the CC using your bank account.

I have not been able to reproduce your problem, so I am not sure how it
occurred. If you follow the above, you should not have any problems.

Stephanie Wells, AICIA
Durham Business Outsource
www.dbo.ca
smwells <at> dbo <dot> ca

Post by p***@uwo.ca
Although I do a lot of work in finance I haven't touched accounting
since an undergrad course many, many years ago--long before GST.
I am having difficulty understanding how MYOB is handling GST. If I
create a small test account and post a new purchase of $600, for
arguments sake, with only GST and charge to American Express, the
Amercian Express liability account is debited for $600 and GST Paid for
$42--fine (well, not so fine at payment time, maybe)!
Now if I go to the bank register and pay American Express from chequing
and enter the original vendor card I get a message saying "If the
cheque you are entering is a payment for a purchase that you have
recorded in Accounting Plus, you should be using 'Pay Vendrors" instead
of "Spend Money" (incidentally if I do this the payment goes through to
the vendor not the credit card) but ithe full amount of the original
purchase is credited to the American Express account. However, since
only $600 was debited to the card in the first place this leaves a
credit of $42 after payment.
If I don't enter the vendor card in the bank register window when I
make the payment, I avoid the error message but the end result is the
same--a $42 credit on the card if I pay the full amount (purchase price
+ GST) that the credit-card company will invoice.
I know MYOB has to keep track of GST but one gets invoiced for price +
tax and that's the value one writes a cheque for. So why does MYOB
insist on not debiting credit-card accounts for GST.
I realize this is probably sublimely obvious but it's not at all
obvious to me at the moment. Could someone please clarify!
Thanks!