Is this the best way to deal with the following:
I invoice using the Sales Receipts for services rendered that are not taxable (trucking fee's in Quebec).
ie: item Trip Log $500.00 tax code Z
Within the same sales receipt I must deduct expenses my client is charging me - which are taxable. Such as Truck Wash $10 and Truck Trip Fee $20. I have these items set up as 'expenses' with tax codes of "S".
The Sales Receipt shows a negative GST and PST amount; this is as expected.
However, when I review my GST and PST Liability Reports they come up with negative SALES amounts of $30 which are really my expense items. Same happens within the Tax filing section.
I know why this happens, and I understand the reports. I dont know of any other better way to deal with this situation. Should I be concerned about this, is there a better way to handle this transaction.
"I" know to simply add the negative sale to the other real purchases to get my total expenses/purchases ... I know the outcome is accurate for GST and PST (mostly always refunds. My concern is in showing negative sales for what in fact are my Wash & Trip fee expenses.
Am I concerned about nothing here, have I overlooked anything!??? Small company just looking to ensure we get our GST/PST refunds on all allowable expenses. All other applicable expenses are recorded accurately within the BILLS section, as are the tax ramifications of those expenses.
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