If you have turned on Provincial Sales Tax (PST) in QuickBooks Online for BC, SK or MB and use it for purchases there are some changes you need to know about in the latest release of QBO. Previously, if you made a purchase that had PST applied, we would create a journal entry that broke the PST out into a separate account. It would often look like this:
Going forward, after the October 2014 release, we will start treating the PST portion of the transaction differently. The PST will be attributed to the expense or capital item you have purchased. Your purchase transaction will look something like this, instead:
Why did we make this change? This new way of accounting for the PST is more correct for accounting purposes and will save you and/or your accountant time at period-end.
Will this change my old transactions? No. All accounting entries made before this release will remain unaffected – we won’t make any changes to them. This change only applies to entries made after the October release is live.
What do I have to do to take advantage of this change? Nothing. The change will simply apply as you go about entering your transactions as you normally do.