|
Posted by Jack on November 16, 2007, 2:20 pm
Please log in for more thread options
> Jack wrote:
>> I'm using QuickBooks Pro 2006 (Canadian Edition). I've just got to do my
>> GST and found out a rather strange thing.
>>
>> From time to time I give my clients (service business) discounts. I've
>> created a special item 'discounts' and once I enter in on my invoice, the
>> amount becomes negative.
>>
>> I've created a GST detailed report and was trying to find out
>> discrepancies
>> between the income for GST purposes and my total income. I've noticed
>> that
>> some of my discounts that I have given to my clients appear on this
>> report
>> as negative numbers; others, as positive numbers. Because all net amount
>> (income received from clients) appear on this report as negative numbers,
>> then the discounts given should appear as positive numbers-well, some do,
>> others don't.
>>
>> I've just created a fake invoice for $10,000 and also entered a discount
>> in
>> the same amount, $10,000. Total sales amount in this report went up by
>> $20,000 (so, the original income and the discount were added up).
>> However,
>> some other discounts do appear correctly, i.e., positive numbers (and
>> they
>> reduce the total income). It makes no sense whatsoever!
>>
>> I'd really appreciated any comments.
>> Thanks,
>> Jack
>
> You have bad items in your item list for some/all of the discounts. They
> are
> pointing to the wrong accounts on your chart of accounts. Have a talk
> with your
> CPA before you do more damage.
>
>
> Also realize if you sell and item for $10,001 and give a $10,000 discount,
> the
> tax man wants tax on the "real sales price" of $10,001. Of course your
> P&L
> shows only $1 in revenue.
Hello,
I appreciate your reply.
I've checked my chart of accounts. The item 'discounts' is assigned to the
following account: Income: Discounts. The GST code is automatically
assigned to this discount. When I went to the Chart of Accounts and clicked
on "Income: Discounts", creating an Account Quick Report for the previous
fiscal year, I could see all the discounts (all eleven of them) given over
that year; all of them were (correctly) negative values. So, I guess
everything is OK here.
The problem is that when I create a GST Detail report (detailing all taxable
income for the fiscal year), the report does include all the 11 discounts;
however, four of those amounts are positive and the 8 are negative. I've
checked and rechecked all the invoices in question and cannot find any
differences: each invoice has the same item name ("discount") and each
discount on each invoice is a negative value.
My point is-if all the values were consistently incorrect (i.e., positive)
on the GST Detail report, then I'd know there is a problem with the wrong
account on my chart of accounts. But what strikes me is the fact that SOME
are positive and SOME are negative. Beats me!!!
Regarding charging tax on the full price-I know sometimes it must be done,
but not in my business, so it's not an issue.
I'd again appreciate if anyone has any ideas as to what can cause this
strange problem.
Thanks,
Jack
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap