With a public service body, assuming a 50% rebate on their GST expenses in this case, you want to create tax group codes with a maximum of 2 tax codes in it so that ReceiptBank and other apps are more likely to play favourably with your codes. This also assumes you are not collecting PST.
The idea is to create 3 tax codes:
GITC, GNT, and SNT
GITC is the 50% GST that will go to your liability account.
GNT is the non tracking portion of the GST. You want it to go back to the source account, not to be expensed.
SNT is the non tracking portion of the GST, plus the provincial tax. You want it to go back to the source account, not to be expensed.
First Steps to get into the taxes:
So here are the 3 tax codes being set up:
And here is a summary of the 3 tax codes:
Now you need to create 2 tax group codes.
Select Create a Group Rate:
Here is GCH (GST Charity) being set up:
And here SCH (Standard Charity) being set up:
And then the two group tax codes summarized:
Now here is an example of they will work with a bill:
Assume the bill has GST only: USE GCH for your Sales Tax Field:
50% of the GST goes to the liability account, and the other 50% goes back to the source account.
I’ve copied the journal entry onto the bill so you can see the mapping:
Now here is an example of they will work with a bill:
Assume the bill has GST & PST: USE SCH for your Sales Tax Field:
50% of the GST goes to the liability account, and the other 50% goes back to the source account, the PST goes back to the source account as well.
I’ve copied the journal entry onto the bill so you can see the mapping:
