Software: Intuit Quickbooks Desktop accounting system
In QuickBooks, only bank, accounts receivable, accounts payable, and the credit card accounts have the multiple currencies option.
After turning on the multiple currencies feature in QuickBooks, you have to set the trading currency in each debtor or creditor profile. So, the related transaction will record in foreign currency.
By default, the foreign currency transaction will pick up the exchange rate from the currency table; however, you can change the exchange rate to match the GST in Singapore dollar which shows on the foreign currency bill.
Local Supplier who billed you in foreign currency has to show the amount before GST, GST, and the amount inclusive of GST in Singapore dollar equivalent. You have to follow the exchange rate shown on the bill instead of the system exchange rate, so to claim the input tax correctly.
For example, your system exchange rate is 1USD:1.3500SGD. You received a US dollar bill from a local supplier shows a GST of US$700 (S$947.10 Singapore dollar equivalent). Then, you record the bill at 1USD:1.3530SGD instead of the system exchange rate. It affects the GST amount in Singapore dollar if using the system exchange rate instead.
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Software: MoneyWorks #accounting software
By default, MoneyWorks does not show the tax column in transactions windows such as Sales Invoice and Purchase Invoice. When recording a transaction, you just need to select the tax code and let MoneyWorks do the tax calculation automatically.
However, due to rounding differences, the GST amount on the bill you received may be different from your entry. To adjust the GST amount, you need to turn on the “Show Tax Column” from the Document Preferences, then amend the tax amount in the transaction according to the bill received.
You will get a warning message that the GST report contains anomalous transactions if there is any incorrect GST amount for the tax code.
Posted in Accounting, Accounting Software Singapore, GST, MoneyWorks, MoneyWorks v7
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Software: Intuit #QuickBooks desktop #accounting software
You have to File Tax Return after the GST cycle. File Tax Return is a QuickBooks internal process, which contra the GST Input and GST Output account and transfer the balances to the Receivable or Payable account. It is not a process of filing tax with the Comptroller of Goods and Services Tax. The filing of Form 5 online still has to do it manually at the Tax portal.
Assuming as at last GST Cycle, you have $22,475.82 in Tax on Sales (GST Output) and $13,319.45 in Tax on Purchase (GST Input). When you are ready to file GST, you click the “File Tax Return” button at the top of the Tax Detail Report to start the file tax process. You have an option of using the default Accounts Receivable or Accounts Payable account or create a separate account to capture the net GST claimable or payable amount. After the file tax process, QuickBooks automatically record a General Journal to reclassify the balances from the GST Input and GST Output account to the Receivable or Payable account. For the above example, it debits GST Output 22,475.82, credit GST Input 13,319.45 and Accounts Payable of 9,156.37.
After reclassification, both GST Input and GST Output has a zero balance and will remove from the Balance Sheet report. You can find the net GST claimable or payable for the quarter in the Accounts Receivable or Accounts Payable ageing report. Then, use a Receive Payment transaction to record the refund received or a Pay Bill transaction to record the payment made to the Comptroller of GST.
Posted in Accounting, Accounting Software Singapore, Canadian version, QuickBooks, QuickBooks 2016, QuickBooks Asia, QuickBooks Singapore
Tagged accounting software, accounting software Hong Kong, accounting software Malaysia, accounting software Myanmar, accounting software singapore, GST, QuickBooks Asia, QuickBooks Hong Kong, QuickBooks Malaysia, QuickBooks Singapore, Small Business Accounting Software