When recording this invoice you would use the GST/HST paid on purchases account nbr for all of the GST amounts above which is 344.28 + .50. Then record the 1.00 in your QST account nbr and the Advance of 10.00 would be an expense to either the same account nbr as the item purchased or one called something like Brokerage Fees.

You should also show in description column the original vendor name the goods was imported from along with the invoice nbr and date.

Thank-you for the reply Smithco BUT, you just completely lost me here.

When you say recording this invoice, do you mean recording it under the shipping company (ex: FedEx) or on the invoice of the company I actually purchased the goods from?

Excuse me if this sounds again like a silly question but like I said, your answer confused me more than I already was.

Please advise.

Cheers,

Marc

No problem at all - I did mean posting in A/P Purchase module under vendor name of FedEx - hence why I suggested you enter in the decscription column the original vendor name, inv nbr, and date the product came from so that if any questions you know which vendor this particular invoice references to.

Your account nbr 2115 Import Duty Clearing is not needed for this invoice since there is no duty paid. See below for an idea of the definition of Import Duty as per Wikipedia:

Canadian import duties is the amount of tax or tariff paid while importing goods into Canada. The Canada Border Services Agency collects the tariff on all imported goods.[1]

According to the North American Free Trade Agreement, there is no duty to be paid if the goods are for personal use and "the goods are marked as made in the United States, Canada or Mexico, or the goods are not marked or labelled to indicate that they were made anywhere other than in the United States, Canada or Mexico."[2]

Canadians also have to pay the federal goods and services tax and in most provinces provincial sales tax on the imported goods.

OK BUT, if I record it under FedEx as you say, the fist amount which is $344.28 is the GST I paid on importing the goods into Canada.

I cannot put a tax code when entering that amount as this would add 5% to that amount (i.e.: tax on tax). Not to mention that the total ($344.28 + 5%) would be totally inacurate.

This results in the GST paid ($344.28) not appearing in my taxes paid and collected total when I run my quarterly tax remittance report.

Therein lies my problem.

OK BUT, if I record it under FedEx as you say, the fist amount which is $344.28 is the GST I paid on importing the goods into Canada.

I cannot put a tax code when entering that amount as this would add 5% to that amount (i.e.: tax on tax). Not to mention that the total ($344.28 + 5%) would be totally inacurate.

This results in the GST paid ($344.28) not appearing in my taxes paid and collected total when I run my quarterly tax remittance report.

Therein lies my problem.

Further to previous answer, if I record information in the following way, does this make sense?

Go into Vendors and purchases, select payments, pay expense

Choose customs broker who invoiced me (ex: FedEx) - Payment method: Pay Later

1st line I do the following:

- select acct# 2115 (Import duty and clearing)

- Put in description and amount charged for duty (if any)

2nd line:

- Select acct# 2325 GST/HST adjustments (sales tax payable)

- Enter description and amount

3rd line: For provincial Sales tax I select acct# 2355 QST adjustments in my case

- Entewr description and amount

and then process the transaction

Because I used GST/HST and PST payable accounts in my 2nd and 3rd line, the amounts "should" be recorded in the proper tax paid accounts and should appear on my tax remittance accounts, correct?

Please confirm.

Cheers,

Marc

When you enter the amount of 344.28 you would not enter any tax code (just leave tax column blank) and  in the Account column enter the GST Paid on Purchases account nbr. You can put the 10.00 in with the tax code so that it does calculate the taxes on that amount.

Let me know if you are not sure what I mean and I will see if I can do a screen shot for you to look at.

A print screen may actually help. Than-you for offering. However, could it be that what you are saying and what I described above is the same?

Forgot to mention that in all cases, I put no tax. However, because I selected the GST and QST adjustments accounts on the lines where I put an amount, these are properly recorded and appear when I run my quarterly remittance report, no?

Sorry - I selected A/P Purchase module, select payment method as 'Pay Later', select vendor name as FedEx along with invoice number/invoice date, and entered my information there. Then I go into payments and make out a cheque to Feb Ex as a 'Pay Purchase Invoices'.

Or you can go into Purchase module and select Payment Method to by cheque or ?? and still enter all the required information.

Comes to the same as what I described above, no?

It may - give it a try. However are you claiming the QST back? I'm not in Quebec but in general the PST (provincial sales tax) is part of the cost of the item and not claimable.

I'm going to send a screen shot.

I am trying it and will compare Sage results with manual report I'm doing in Excel right now. Hopefully they will match.

In Quebec, when you do your Quarterly tax report, you deduct GST and QST paid from what you collected. Depending on the result, you pay the govt what you owe (both taxes) or submit a claim. The claim can be for both taxes, yes

Hey Marc:

I am jumping in here. We do this type of invoice all the time. We have set a recurring entry in our vendor in the AP module.

From the example below, I used your amount for GST Canada, it has it's own line and I do not assign any taxes to that amount and I link it to the GST paid on purchases, this way it will go into that account so you can claim as ITC. I set up a second line for the Clearing fee of $10, you can assign the appropriate tax code to that line. (In this case tax is only 12%, but you get the idea). 

If you view your journal entry, under report menu, that may give you a clearer picture.

I hope this helps.

Cathy