Category Archives: QuickBooks 2012

QuickBooks | GST on imported goods

Software: Intuit QuickBooks accounting software

The foreign vendor, which you imported goods from, is not a GST register trader; hence they will not indicate the GST on their bill.

However, when the goods arrived Singapore, you are required to pay the GST at the Custom (Sometime the forwarder may pay the GST on behalf of you).

Assuming the GST (7%) paid is $7,571.76 (that is based on an imported value of $108,168.00). You may use a Write Cheque transaction to record this payment.

The first line under the expense tab is $108,168.00 with 7% rated GST, and the second line will be a negative value of $108,168.00 without any GST associated. This is to contra off the value in the Cost of Goods Sold account.

QuickBooks - Write Cheque

The double entry for this transaction is:

Debit Cost of Goods Sold: 108,168.00

Credit Cost of Goods Sold: 108,168.00

Debit GST Payable: 7,571.76

Credit: Bank: 7,571.76

The Cost of Goods Sold account is a dummy account which you use to indicate the purchase value, you may consider to use a different account such as GST expense account.

This will also update the Tax report, under the Tax on Purchase section. $108,168.00 will be the taxable purchase and $7,571.76 is the input tax value.



Recording foreign currency transaction without multiple currencies feature turned on

Software: Intuit QuickBooks accounting software

You received a foreign currency bill for the amount of USD10,000.00. Since you did not turn on the multiple currency feature, you record the bill in SGD. Assuming you decided to use the exchange rate of 1USD to 1.3000SGD, the SGD amount booked will be SGD13,000.00.

QuickBooks - Enter Bill

The exchange rate given by the bank, when you made a TT (Telegraphic Transfer) payment to the supplier, was 1.2345 (SGD12,345.00).

The gain from exchange in this case is SGD655.00 (SGD13,000 – 12,345), you pass a journal (from the Company menu, select Make General Journal Entries) to debit the Accounts Payable account and credit the Exchange Gain/Loss account.

QuickBooks - General Journal

From the Payment transaction window, select the Bill to pay and click the Set Credit button to select the debit journal you had just entered. The amount to pay will show as SGD12,345.00.

QuickBooks - Pay Bill

If there is bank charge involved, you may pass a journal to debit the Bank Charges expense and credit the Bank account or use a Payment transaction to issue a payment from the Bank account to the Bank Charge expense account.

Separate the Sundry Creditor from Trade Creditor

Software: Intuit QuickBooks accounting software

To simplify the data entry, by default, QuickBooks is using an Accounts Payable account to track all the Bills received.

However, some accountant may prefer to separate the Sundry Creditor from the Trade Creditor when printing the Accounts Payable Ageing report.

You can use the Vendor type to segregate the vendors. You may add vendor type such as Sundry and Trade, then set the sundry creditor with Sundry vendor type and trade creditor with Trade vendor type.

QuickBooks - Vendor Type

The vendor type will not affect the data entry nor the account.

When printing the Accounts Payable Ageing report, you can filter the Vendor Type by show only the Sundry or Trade vendor type.

QuickBooks - Filter ageing report

This will separate the Accounts Payable into two separate reports, one for the Sundry and the other for Trade.

QuickBooks - Ageing report