GST Paid on Purchases - Previous Year

In doing my 2014 taxes, I realized my GST Paid on Purchases is not being calculated. Fixed that in current year 2015, but now do I need to restore to fix in 2014 and transfer GIFI codes to Ufile?

Why is SAGE so ridiculous? This will be the 2nd time I've had to restore due to set up issues, originally set up by my accountant. I don't have time for this!

  • 0

    mlkelly said:
    I realized my GST Paid on Purchases is not being calculated. Fixed that in current year 2015, but now do I need to restore to fix in 2014 and transfer GIFI codes to Ufile?

    If you have not yet opened the 2016 year, and if 2015 was the first full year you entered, you can enter summary journal entries, or you can restore, or you may be able to reverse, and then re-enter each purchase.

    mlkelly said:
    This will be the 2nd time I've had to restore due to set up issues, originally set up by my accountant.

    Depending on how much was set up by you, and by your accountant, you may want to reopen that discussion with the person / firm involved. 

    Sage 50 is usually fairly straightforward to set up. 

  • 0 in reply to RandyW
    I've closed 2014, waiting to close 2015, have not started 2016. When you say summary journal entries, you just referring to entering one longer JE rather than individual ones at the beginning of 2015 to correct the mistake going forward?
  • 0 in reply to mlkelly

    If GST wasn't set up yet, and you recorded a single purchase for a total of $1050 as a debit to inventory, purchases, expense, capital, or whatever, and it should have been recorded as $1000 plus $50 GST, the only way to fix it is:
    1. Reverse the transaction.
    2. Enter the transaction again.
    Repeat for all other transactions that should have included GST.

    'Adjusting' the transaction won't work, since Sales Tax Settings are stored with the invoice, and you won't be able to use a tax that didn't exist at the time.

    Or

    If reversing the transactions and re-entering them will mess up other things (i.e. inventory balances, etc.) you could keep the detail, as you say, by entering all the individual amounts as detail lines in one journal entry, as of the end of the period it relates to.

    Or

    If you have already added everything up, and know (for example) that the total GST paid on $105,000 gross purchases for the year was $5,000, you could enter a single, two-line journal entry debiting the sales tax paid account for $5,000, and crediting the balance against the appropriate purchase account.