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Archive for the tag “Invoices”

HOW TO SET UP TAX RATES FOR A CHARITY IN QBO TO SPLIT THE GST/HST ON SALES 60/40%

“If your charity is a GST/HST registrant, you have to use a special net tax calculation for charities. When you use this calculation, you generally remit 60% of the GST/HST you charge and claim ITCs only on certain items, where all the conditions for claiming ITCs are met. In addition, you can claim the PSB rebate of the GST/HST paid or payable on your eligible purchases and expenses and for which you cannot claim ITCs, whether the GST/HST relates to your commercial activities or exempt activities.”

Source: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4082-gst-hst-information-charities/gst-hst-information-charities.html#P283_24869

What does this mean? When you charge and collect tax on sales, you will remit 60% and keep 40% of the amount collected. And although you will only be claim ITCs on certain items (know the rules), you will be eligible for the PSB rebate, meaning you will receive a rebate for 50% of the GST or federal part of the HST paid on purchases.

See my other blog post HOW TO SET UP THE GST/HST PUBLIC SERVICE BODIES’ (PSB) REBATE IN QBO here.

Here’s how to set this up in QBO. We’re going to add two new tax rates, then a new tax group. I’m in a GST only province, so I’m going to set this up with the 5% GST in mind. You can modify this to work in different provinces by adjusting the percentages.

STEP ONE: ADD NEW TAX RATE

  • Click on Taxes from the left navigation bar
  • Click on Add tax in the upper right-hand corner

Add tax from sales tax centre

  • Choose Tax rate

Add Tax Rate Expanded

  • Fill out as shown

GST 60 Percent Sales

  • Click Save

 

STEP TWO: ADD NEW TAX RATE

  • Click on Taxes from the left navigation bar
  • Click on Add tax in the upper right-hand corner

Add tax from sales tax centre

  • Choose Tax rateAdd Tax Rate Expanded
  • Fill out as shown

GST 40 Percent Keep as Income

  • Click Save

 

STEP THREE: ADD GROUP RATE

  • Click on Taxes from the left navigation bar
  • Click on Add tax in the upper right-hand corner

Add tax from sales tax centre

  • Choose Group rate

Add group rate

  • Fill out as shown

NFP on Sales Group Rate

  • Click Save

REVIEW YOUR WORK

SS1

New rates and group for 60 40 split

TIP: You can inactivate (by toggling Off) the two tax rates you just added so that only the group rate appears for selection on transactions.

 

NOTES:

I always test these out first in the test drive file. Here’s the link: https://qbo.intuit.com/redir/testdrive_ca

Use names and descriptions for the tax rates and group rate that make sense to you. Just remember that the group rate cannot be edited.

Rules around charities can be complicated. Please check the CRA website for more information.

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How the Print later feature works in QBO

Today I searched like crazy for the Print later box while creating an invoice in QBO. I double checked my Company Settings to make sure that my preferred delivery method was Print later. It was. But all I could see was the Send later box at the top of the invoice. After some exploring, I finally found the Print later box. Click on the Print or Preview option at the bottom of the invoice, and you’ll see a check mark box:

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HOW TO BATCH PRINT IN QBO

Once I had confirmed that my invoices were selected to be printed later, I went to find the print queue. But there isn’t one! Well, at least not like there is in desktop. Here’s how this functions in QBO. I’m using Chrome which is the preferred QBO browser.

First, go to Transactions on the left hand navigation bar. From the drop down menu, choose Sales. Click Filter. Choose Invoices for Type and Print later for Delivery Method. Click Apply.

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This will show you all the invoices in your print queue. Simply choose the invoices you’d like to print by checking them off and selecting Print transactions from the Batch actions drop down menu.

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Your invoices will open in another Google tab (all of them in the one tab – scroll down to view). Right click to select Print, choose your printer, then click on Print. When you click back over to QBO, notice the following screen. If everything has printed correctly, select Yes. To leave them in the queue, select No.

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HOW TO GET RID OF INVOICES YOU DON’T WANT TO PRINT

Use this same method to remove invoices from the queue you don’t intend to print. Choose the invoices you want removed from the queue by checking them off. Choose Print transactions from the Batch actions. The invoices will open in another Google tab, just like in the previous example. Instead of printing, you’re going to close the tab that just opened. This takes you back to QBO and the message that appears in the screenshot above. You will be asked if you want to mark the selected transactions as printed. Say Yes. Your print queue should now be empty.

The nice thing about doing this in QBO (as opposed to desktop) is that you don’t have to ‘cheat’ printing the invoices to a PDF file. Note that this also works with sales receipts and expense transactions.

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