posted
Hello,
Unfortunately there is no way for this to happen inside of QBO or QBD automatically. The reason is because of the way the different forms are set up; they prohibit you from doing the type of entry you need to do to record self-assessments of PST, or reversals of PST, in the event you are charged PST for items you purchased for re-sale.
You will need to create two custom PST Tax Items. One is PST Self-Assessed - Box E, and the other is PST Reverse on Purchases - Box B. These must be set-up in Sales Tax. You will have to select both sales and purchases for each item because if you don't, QBO won't allow you to save the item, even though the Self-Assessment item is only pertaining to purchases. You must choose Net tax on Consumption for the Self-Assessment item (which will automatically add Box E to the item) and choose Tax Collected on the Reverse on Purchases item (which will automatically add Box B to the item).
At the beginning of each month, I open a new JE dated for that month's end. When I create the JE, I leave a bunch of blank lines from Line 1 down to about Line 20 (extra lines can be added or deleted at any time). On the last two lines of the JE, I enter both lines to the G/L account, PST Payable, tabbing over and entering the Self-Assessment tax item into the Sales Tax column on one, and the PST Reverse on Purchases tax item on the other.
As I enter vendor invoices throughout the month, if I run into either of these situations, I write either S/A PST and the amount on the invoice, or Reduce PST to 0.00 on the invoice. I immediately open up the JE that I have created to keep going throughout the month, and enter the appropriate lines in there, adjusting the totals on the bottom two lines of the JE as appropriate. I also make sure to enter the purpose of the line and the vendors inv # in the Description column, and the name of the vendor in the Name column. See example:
As long as you tab over and enter the correct tax items in the Sales Tax field, the amounts being posted directly to the PST Payable account will be picked up on your tax reports. I just keep adding lines all month long and close that entry at the end of the month. Only vendor invoices dated in that month should be in that month's JE's. If you start crossing invoice dates with JE's dated in different months, it will become difficult to track what you've done.
When I pull the PST Summary Report, note that the entries made in the above JE are part of the report. Normally there wouldn't be a negative amount payable but this is just a test file so has no other transactions populating the report.
When invoices from the next month start flowing in, I copy this JE, delete all the lines except for the last two PST Payable account lines, and start over, adding lines for each invoice that needs to be entered there.
I have visited this topic from every single angle and I have not found a better way to do this than what I've demonstrated here. Hope it helps. I did another post about this quite awhile ago and would have copied the link to it, but the QB forum doesn't make it easy to find things, unfortunately.
I hope this helps somewhat to solve this very common issue that most businesses have.
