PST adjustments

I'm using Quickbooks in a retail business in Canada and have been
using the PST calcultaion that it works out under
Vendors-->GST/PST-->Pay PST Liability. There is a line at the bottom
for "Adjustments". Once in a while we buy something from a small local
business and they charge us PST. I understand that this can be
reclaimed on the Adjustment line in the PST form.
When I am entering a bill that contains PST, how do I enter the PST so
that it will show up in the Adjustments line of the report? I looked
at the report to see if it was attached to a certain GL account, but I
can't see how I can modify this report or find out what account is
used for this entry.
I hope I have explained the situation clearly and that someone can
Reply to
All PST entries are recorded as either PST on Purchases (only if you have selected that GST/PST Preference, "Record PST separately on purchases") or on Sales. Even if you enter a PST Adjustment you must allocate it to either purchases or sales and it will not appear on an Adjustment line in a report or form. You cannot modify either the report or the form to change this. The only method of dealing with adjustments is to do so manually when completing a return. This applies to GST also.
I presume you are aware that reclaiming the PST applies only on products that were purchased for resale, not on items purchased for use in the business.
Reply to
Thank you for your reply. I have another question about this last statement. This is a business that also rents items, and I understood that repairs and items bought to maintain rental equipment were PST exempt, because the PST was charged each time the item was rented.
For example, if we had our candy floss machine repaired, the labour would be PST exempt. And if we buy plastic bags for packing dishes and cutlery to go to customers, those items would be PST emempt. The rental rates are based on our costs and PST and GST are charged on each rental.
Am I wrong about these examples.?
Thanks, Nancy
Reply to
Nancy, I'm uncertain about the plastic bags and other packing materials, but you are correct about the other matters. For certainty about the packing materials look up the number for sales tax info in the Government section of the phone book and give them a call - on a question like this they will give you a quick and authoritative answer.
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