Great question. And it has a very simple solution!
Go to Enter Bills > Select Vendor > Fill out top portion as usual > Choose expense account (I use the one associated with the original transaction) and use G for tax code > Enter $0 for the amount > Enter the amount of the GST into the GST (ITC) window in the bottom right hand corner
Don’t use the GST/HST Payable account. You will get a warning and this will affect your Sales Tax Returns. This is what most people tend to do!
Sometimes you’ll receive a bill that includes both GST and Duties. It’s the same basic idea:
Go to Enter Bills > Select Vendor > Fill out top portion as usual > Choose applicable expense account (ie Broker Charges) and use G for tax code > Enter amount of expense > Enter the amount of the GST in the GST (ITC) window in the bottom right hand corner
Bottom line? You can always override the GST amount in the bottom right-hand corner box.
More about GST in upcoming posts. As always, I welcome your questions!