How do I track the GST paid in reimbursements to an owner from an 'Other Current Liabilities' account (the GST paid on qualifying expenses) to reduce the company's GST Liablity or GST owed?

Originally, I set up another bank account (just for tracking purposes) to enter company expenses paid for by the owner's personal account. Now I am using an 'Other Current Liabilities' account. So I deleted all the past entries in the personal bank account, and reentered them all into the new current liabilities account register, but now there is no way to seperate the GST and PST paid on purchases. I've noticed that this now affects my GST Liabilities report. QB thinks these are new entries, although I've already claimed the GST on past returns.
How do I show the GST has already been filed for these expenses? And how do I show GST paid for company expenses for future Returns? Are my GST Claims and records still going to be correct?

Hi Cheryl,

Too bad for you because you were doing right the first time. You cannot separate the GST and PST on purchases made thru a “Other Current Liabilities” account.
Use a bank type account called “Petty Cash” or “Paid Cash by Owner”. Use the “Write Cheque” function and select this ‘bank’ account to record the purchases. QB will then correctly separate GST and PST. When it’s time to reimburse the owner, make a cheque from your regular chequing account and post to the Petty Cash account.
If you have already filed the GST and PST for these transactions you will need to go into the GST and PST register and right click on each transaction and chose “File Cheque” and then click the “Record” button.


Michael R. Malo
Certified ProAdvisor and Educator

Visitez http://www3.sympatico.ca/mrmalo pour de la formation sur QuickBooks partout au Québec.

After just reading your idea of setting up a way to record personal paid expenses, my question is as follows:
1. Does this Cash Paid by Owner Bank Account need a begining balance?

2. Can you explain how the transaction appears in the Journal when you write a check from the Company Bank Account to the Cash Paid by Owner.

This will help clarify.

Thanks
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