GST paid to customs on arrival of import goods.

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  • Updated 5 months ago
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Need to know how to enter the full value of GST typically paid to customs on the value of goods imported from outside Australia.

This is only a GST component that I need to enter, as the goods are supplied by a supplier and not customs so another invoice also exists GST free. So to enter GST value, the Enter Bill function, only allows to enter an item cost, and automatically calculates the GST amount. I only need to enter a GST amount. Any ideas ???

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Carlo Sportiello

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Posted 5 years ago

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Ron

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Carlo,  Enter new supplier "Australian Customs & Border Protection". Enter new bill against ACBP for amout of the GST. Clear box at bottom left "Amount Includes Tax" and just enter the GST amount in Tax Amount column.
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Jenni Gibson

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I have done this but it shows as zero on my GST report.
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Carlo Sportiello

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Thank you, but I realised that I needed to tick the "do you want to edit the tax amount" option under EDIT menu, preferences, tax. This now allows me to only enter an item as TAX and 0 amount on the cost of goods. Hopefully this also helps you.

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Nantasa, Accredited Partner

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Another method is to enter against say an account like Inward Freight an amount with a non-capital purchase GST tax code such that it captures the desired GST amount and immediately below use same account but with no GST code and a negative amount of same value as above. The account used zeroes out and the net is the desired GST.
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Carlo Sportiello

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Yes i also did that but it is complicated. This way is faster and in the case that another person needs to enter this transaction, you dont need to explain such things. Whiel i have your attention, do you know if we can apply a price level to items in the inventory. Just like applying price levels for customers?
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Nantasa, Accredited Partner

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Regret clueless on price levelling.
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Krischan

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Hi guys, it looks like I need some help with the same thing. I'd like to follow Ron's suggestion above but am unable to follow exactly as described.

I am paying to the forwarder import fees + GST upon arrival of goods for clearance. So on the invoice I need several items plus import GST. I am having trouble setting this up. I have created an item "GST" with label" GST paid to customs" but it does not let me enter an amount of "GST" in the "TAX" column when using this item on the invoice, so in short not sure if the GST component of the bill needs to be
a) an "other Charge" type item
b) assigned to account "COGS" as the GST paid is returned by the ATO.
Any help greatly appreciated.


On other question above, assuming you don't have the answer already, go to "lists" -> "price level lists" -> create New Price level and then you can edit a new price for each item under the new price level.
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Carlo Sportiello

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Hi. To edit the tax column only in your "enter bill", basically go to edit >preferences > tax > company preferences and tick YES to "do you want to edit tax amounts". I then created a CUSTOMS to GST entry and used this to input the GST to customs tax. Hope it helps.
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Krischan

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Hi Carlo, thanks for the tip with: "edit >preferences > tax > company preferences and tick YES to "do you want to edit tax amounts" ". That worked a treat for editing tax amount.

Now I still have one issue witht he entry of the GST "item". When I enter the item "GST", I enter the item, QTY = 1, Cost = for arguments sake $227, for net amount $227 and for Tax amount $227. Problem is now, it calculates both item cost and GST ie twice what it should, as only the GST amount is applicable. So: is it correct to just enter tax amount and no item cost?

Thanks, help muchly appreciated!
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Carlo Sportiello

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hi,


yes, correct.

all you need to enter is the GST amount. No Item.

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Krischan

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Excellent, thank you very much, very helpful to get confirmation ;-)

While I've got you and you seem to know your way around, ...

Would you know...

When doing import with a broker/freight company, there are many items on the import invoice incl. Freight charge, FOB/Ex works charges, EDI fee, customs automation, quarantine clearance, CMR fee etc etc .... when entering the invoice in Quickbooks, should these all be "items" or should there best be an "account" in chart of account for each of these listed items as they are all expenses?

Thanks again ;-)
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Carlo Sportiello

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We mainly deal with air freight, so my freight forwarding is done by freight companies who import the goods for me. For Example UPS or DHL.

I basically created a UPS and DHL supplier account, where I enter each item separate as the invoice comes from them. In my case, there is GST to customs, Security Fee, Customs Entry Fee and so on... very similar to yours.

I would create a supplier account as your freight forwarding company and enter each item separately and each with its tax code applicable or not.


Hope it helps.


PS. I have had reckon for only 3 months, I just spent a lot of time on the phone and on line sorting things out

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Krischan

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Hi Carlo,

thanks for expalining what you do. I keep on being told to "just do what works for your case". But sometimes it is just really good to hear how other people go about it to understand the different options. I have used reckon for a year now, but only for invoicing and stock management. I'm now in the process of entering all expenses for the last financial year, so just working throught hose ones that are not so straight forward initially ;-)

We receive the UPS/DHL import bills too which are simple with only a couple of lines, but for the shipping companies' bills they are somewhat more complex with many more components.

But, as the split up of the individual components listed on the invoice are not really interesting to track, what I've decided to do, is create an account in chart of accounts for both freight and import costs for each supplier as a COGS account. I can now enter all freight and import costs as "expenses" associated with bringing in the goods from the particular supplier / brand, and the only "item" on the invoice is the "GST" component. This way, I can track both freight and import seperately for each brand/supplier, and it is automatically an expense assigned to COGS.

I hope that makes sense, I guess I'll find out.

Cheers!    
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Jennifer Cummings

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sounds silly but how do I get to the 
"edit >preferences > tax > company preferences "
part?? i'm so confused
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Sarah Jane

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You've probably worked this out but for future people:
Settings > Tax Settings > General
and then you tick the box that says Edit Tax amounts