How do I bill items used internally in my business?

cromwellpr · ‎January 20, 2020

EX- If I use a hydraulic hose assembly made from 3 inventory items to repair our forklift how do I write these items off along with paying the provincial tax on it?

When I purchase inventory I do not pay PST but when I sell the inventory I have to collect the PST.

Therefor when I use inventory internally my business should pay PST on it.

Does it have to be done with inventory adjustments and PST journal entry adjustments?

JamesM · ‎January 20, 2020

Hi there,

Welcome to the Community. Making sure you're recording your transactions the right way is a good exercise for preventing errors in your books.

I recommend contacting an accounting professional to get more info on this. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies. Let me know if you have other questions. I'm here to help.

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How do I bill items used internally in my business?

How do I bill items used internally in my business?

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