How to add the HST to the expense.

Question

When posting a purchase invoice in Sage, how do I get the HST added to the expense instead of HST account? We are a small business so we cannot collect the HST we pay on purchases. When I enter a list of items on an invoice with different accounts, I have to manually calculate the HST.

Richard S. Ridings · Answer

Technically we don't collect HST on what you pay for purchases. We record the amount paid and deduct it from what we record/collect on customer invoices before we remit to the CRA. 
 It sounds like you have revenue less than $30,000 so you don't need to be registered for HST. If this is the case, then in the setup of the HST tax code, change the Is Refundable column from Yes to No. This way you can still use the sales tax codes to build your purchase invoice data entry and the calculations will expense the HST on purchases. 
 You can either not use the HST tax code on your sales or make the tax code, Payables module only so they can't be selected in the Receivables module.

Sage 50 Canada

How to add the HST to the expense.

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