In April I ugraded my QB from 2002 to 2005 thinking in 3 years there should be some improvments.
I installed my company backup file ... and now I am due to pay the next GST PST. When I go in QB 2005 for my GST payment for April May and June ... the result is something similar to this:
THIS IS WRONG .... tax paid on purchases of 4000 should be 280
???
Same with the PST Sales 9500 Purchases 4000 Tax collected 750 Tax paid on purchases 2200 ... which happens to be the exact amount of PST I paid last quarter. Net Tax -1500
Again this is wrong. Any Idea what is going on. I should have stayed with the 2002 version of QB!
- The handling of taxes was significantly improved between versions
2002 and 2005. If you did not follow the updating instructions VERY CAREFULLY, your figures will be wrong. This can be corrected. Not particularly difficult, but it requires some time and effort. Read the HELP file.
- If you do not use tax codes on all applicable transactions, some figures in the tax reports will be incorrect - specifically the sales and purchases figures, the tax amounts may still be correct depending on how you misuse the tax codes. The purchases figure isn't required anyway, and the sales figures you can get from other sources such as a P&L report.
- If you do not use the tax payment method recommended by the program (for example, if you simply "Write Cheque"), your tax paid figures will be wrong - in exactly the way you describe for your PST.
- If you make a General Journal Entry involving PST or GST you are asked to designate the tax amount as applying to either sales or purchases. If you designate it incorrectly, your tax paid/collected figures will be incorrect (although the NET amount will be correct for GST).
No-one can tell exactly what you did wrong on the basis of the information you provided, but I would guess that made at least 2 of the above mistakes - and possibly all 4.
If you use the program correctly, it manages the tax liabilities very well. You can ignore or misuse the tax features and still get the necessary information using standard old-fashioned account analysis and reconciliation methods.
Figure out what you are doing wrong in using the program, and be sure you are not continuing to make the same mistakes. Then figure out your correct tax position and make the necessary adjustments per the HELP file.
"Lynne Nerb> In April I ugraded my QB from 2002 to 2005 thinking in 3 years there should
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