How do I enter an expense for Handling Fee, GST/PST paid to CBSA for an imported item?

Good morning simplyadventures,

It's nice to see you reach out to the community. I would love to share some knowledge about recording this type of transaction.

For the deduction to happen for your GST/PST for the payment of taxes to CBSA, we will want to use the category item section in our expense and target our GST/PST (then exempt under tax codes since we are targeting our tax code accounts already) account to show the deduction. We will create the rest of the expense as per usual, and upload the copy of the receipt through attachments to back up our work.

For future shipping and handling, etc. transaction we can use the following method:

You will first want to start by creating an account in Chart Of Accounts.

Below is an example of my shipping account set up. It's good practice to have a general account for all types of freight, shipping, handling  etc. rather than having multiple account for essentially the same thing.

Account Type: Expenses

Detail Type: Shipping, Freight, Delivery

Name: (You can name the account a name of your choice you can see mine in the example)

Default Tax: GST/PST << what this does is that it prefills the tax for you each and every type you use anything linked to this specified account

Once you are done creating the account, you can create a non-inventory item and link the handling fee account to the non-inventory item to use in the Item Detail Section, or you can stick with the category detail section and just use the account from Chart Of Accounts to categorize your expense.

I will add just one more piece of guidance when entering expenses, and that is to target your expenses and bills per line item as at times not all line items are taxed and we want to ensure that our transactions are mirroring what our receipts, bills, are presenting when it comes to the breakdown of the numbers.

I hope this helps! If you have any further questions or concerns please do not hesitate to reach back out I'll try to respond in a timely manner.

Have an awesome rest of your Sunday.

Kindest Regards,

Lourdes Fernandez

Hi Lourdes,

Thank you for your reply.   I have tried this, and am running into the problem of quickbooks auto calculating the tax amount.   The transaction I am entering is a handling fee of $9.95, with GST of $26, PST of $38.   When I enter the tax manually, I get an error message that will not allow me to save the transaction.   Do you have any ideas of how to override the tax calculation?   

Thank you