Canada Edition: Record GST on Journal Entries

Currently, Canada taxation does not support tax on journal entries.  This is the reason why the Tax column disappears when selecting a Canada subsidiary or when using NetSuite Canada Edition.  The following steps will allow users to record and track tax applicable to journal transactions.  An example is when a user needs to record GST on service fee charged by a payroll provider.  The service fee is debited to the company's bank account together with the payroll which will be recorded via a journal entry.

1. Enter a Journal to account for the payroll entry together with the service fee and the applicable GST.
  a. Navigate to Transactions > Financial > Make Journal Entries.
  b. Enter the following: Date, Posting Period, Currency, Exchange Rate and Subsidiary (for OneWorld users).
  c. Below is just an illustration of the accounting entry:
    --Account---------------------------Debit----------------Credit----------------Name
    --Salaries---------------------------5,000.00
    --Accounts Payable-----------------157.50***-------------------------------Payroll Service Provider (vendor)
    --Bank Account--------------------------------------------5,157.50
    ***Accounts Payable should be the total of the service fee and applicable GST.  In this example, assume that service fee is 150.00 while GST is 7.50.  The vendor name should be indicated on the Name field so that this can be applied against the bill later.

2. Enter a bill for the Payroll Service Provider
  a. Navigate to Transactions > Purchases/Vendors > Enter Bills.
  b. Select the Payroll Service Provider in the Vendor field.
  c. Under Expenses tab, select the appropriate account for the service fee.
  d. Enter Amount.  In the given example, it should be 150.00
  e. Select the applicable tax code for the GST.
  f. Click Save.

Note: The credit to Accounts Payable on the GL Impact of the bill should be the same total as the journal entry above.

3. Apply the journal as payment to the bill.
  a. On the Bill, click Make Payment button.
  b. On the Bill Payment screen, both the Bill and the Journal should be listed.  Tick the Apply box on both transactions.  Their amounts should offset each other and bill payment Amount should be 0.00.
  c. Click Save

Note: The status of the bill after saving the bill payment should be Paid in Full.