A company has billed you the GST separately for an earlier purchase that did not have the GST included. How can this be entered into Phoenix?
Enter the withdrawal or cheque transaction for the amount of the GST, then add 2 dissections:
1.In the first dissection, refund the original ex. GST amount back to the original expense category to which it was allocated. N.B. You MUST force the GST rate to 0, not applicable.
2.In the second dissection, re-allocate the full amount including GST back to the original expense.
3.Check that the entries are correct by confirming that the total of the transaction equals the total GST.
For example, you have been billed $100 GST for an item originally purchased for $1000…
… The original $1000 expense still exists and will be reported in the period in which it was entered. In the November 2001 transaction above, the $1000 ex. tax component is balanced out to zero leaving just the additional inc. tax amount of $100 for the expense.
Note: If the GST bill is just for a pro rata portion of the original expense, then you would only refund back, and re-enter, the pro rata amount of the expense that matches the GST you have to pay.
