Posted onSeptember 13, 2022|Comments Off on How to record the GST paid on your behalf by the forwarder in QuickBooks?
The non-GST registered overseas supplier will not be billing you GST for the goods imported, but you have to pay the GST directly to the Custom or the forwarder if they paid on your behalf.
Assuming the bill received is S$100,000.00. You enter the Bill into QuickBooks Online (QBO) as debiting the cost of goods sold and crediting the accounts payable with NR (non-registered trader) or OP (out-of-scope purchase) GST code. Note: It debits the inventory assets instead of the cost of goods sold if you are using the inventory feature in QuickBooks.
Let’s say the forwarder billed you:
Transport/Trucking/Storage charges: $5,800.00
Custom clearance charges: $150.00
Custom documentation fee: $30.00
7% GST (paid on behalf): $7,000.00
Subtotal: $12,980.00 GST 7% (on $5,800): $406.00 Amount due: $13,386.00
The $7000 is the GST paid on your behalf, whereas the $406 is the GST for the forwarding services.
So, you record the forwarder bill into QBO as:
Row 1: Freight Charges: 5,800.00 (7% GST)
Row 2: Freight Charges: 150.00 (OP GST Code)
Row 3: Freight Charges: 30.00 (OP GST Code)
Row 4: Cost of Goods Sold: 100,000.00 (with 7% GST)
Row 5: Cost of Goods Sold: -100,000.00 (OP GST Code)
Row 4 indicates the taxable amount of $100,000 for the $7000 GST paid, which will show in the GST Form 5 report.
Row 5 is a reverse of the taxable amount of $100,000 from the cost of goods sold since the actual purchase has already been recorded (Supplier Bill).
GST Form 5 box number 7, input tax and refund claims:
The taxable amount in the Singapore dollar is converted based on the Custom exchange rate, which may be different from your system exchange rate. Therefore, the taxable amount (Singapore dollar equivalent) in the forwarder bill may not be the same as the supplier bill you entered earlier. You claim according to what you have paid.
QuickBooks Online (QBO) is a cloud-based accounting system. It uses a web browser to access your company file without the software installed on your computer. You may contact us if you wish to switch to QBO from QuickBooks Desktop or Reckon Accounts.
Comments Off on How to record the GST paid on your behalf by the forwarder in QuickBooks?
MoneyWorks allows the user to open up to 90 opened financial periods. Once the maximum number of periods has reached, the user has to close some of the older periods to open up a new period.
For those users who have started using MoneyWork in May or June 2014, you may have already reached a maximum number of open periods. You cannot open a new period unless you close some of the older periods. The New button in the Open/Close period window is grey off and not allowed to click.
It’s time to close some periods.
Assuming you have started using MoneyWorks from June 2014 and wish to close some older periods until December 2014. First, print those reports as of December 2014 if you have not done so. Then, do a backup before proceeding in closing periods.
You should post any transaction in those periods you wish to close and reconcile the bank and finalise GST if you have not done so.
For those bank account that you do not require to perform reconciliation (such as contra or transition bank account), you may consider unchecking the “Bank account must be reconciled” checkbox from the Bank setting tab of the account profile. These will ease the purging later if you wish to do so.
Go to the Command menu and select Open/Close period.
Then, highlight the last period which you wish to close until (that is December 2014 in this case), and
Click the “CLOSE” button to close the periods until December 2014.
That’s it. You can now proceed to open a new period.
The transactions are still in the MoneyWorks database even though the periods have been closed. You can still print the data using “By date-range reports”, such as Sales or Profit & Loss Report by Date Range.
The current version of the MoneyWorks accounting software is 9.0.5. Download a trial to test drive if you like to find out more or book a demo to see how to use MoneyWorks to manage your business finance.
Those users who are using MoneyWorks Now and require to access your MoneyWork company file while working from home can download the software from the Cognito website. Install it into your home computer (either macOS or Windows) and access it with the same MoneyWorks ID and password as you log in from the office. That’s the beauty of cloud-based computing; accessing your data anyplace, anytime.
Cognito has released the MoneyWorks 9.0.4 updates.
Besides bug fixes and improvements, Cognito added a new Profit and Loss by Date Range report.
Why needs a Profit and Loss by Date Range?
By Date Range means you can print the report within the specific date range instead of the usual financial period, such as from 1st to 15th January, instead of period January which will be from 1st to 31st January.
This report also come in handy when printing the profits and losses of the closed period. MoneyWorks period list shows up to a maximum of 90 periods. Although those transactions beyond the 90-period range are still in the database, you cannot print them since you cannot select the period from the report wizard’s period dropdown field. With the Profit and Loss by Date Range, you can set the date range and print (e.g. from 1st January 2013 to 31st December 2013).
Visit the Cognito website to find out more about the change history for v9.0.4.