Software: QuickBooks accounting software
When importing goods into Singapore, you are required to pay your GST to the Singapore Custom (sometime, this was paid on behalf by the forwarder). How are you going to record this GST charge into QuickBooks and a claim from IRAS later in your GST form 5?
One of the methods, which is widely used by QuickBooks user is entering the taxable amount in the amount column with a standard rated tax code in the first line item of the expenses tab; then, less the taxable amount without tax code associated in the second line item.
You can use a Write Cheque transaction if you are paying to the Customs directly or Bills if you are recording a bill from the forwarder.
In the Write Cheque transaction, payment to Customs, if the account used is Cost of Goods Sold, the taxable amount is $100,000.00 and 7% GST is $7,000.00; then, the double entry will be:
Debit Cost of Goods Sold account: $100,000.00
Debit Tax Payable account: $7,000.00
Credit Cost of Goods Sold account: $100,000.00
Credit Bank: $7,000.00
Now, the $7,000.00 tax amount will be shown in the Input section of your GST report (for Canadian version, will show under Tax on Purchase section of the GST report). This will be added to your Input tax when submitting your Form 5.
The Cost of Goods Sold account in the Profit and Loss report will be zero as there are a debit and credit of $100,000.00. However, the actual bill received from the overseas supplier will be recorded in the Cost of Goods Sold account (if you are using stock item, then, the Cost of Goods Sold account will only be updated once Sales Invoice is generated).
From either your Bank register or Balance Sheet report, you can see that $7,000.00 is being deducted from your Bank account.