How would you set up GST on Purchases but not on Sales ?
We are not GST registered, so when we buy products from the supplier, we have to pay GST and this becomes part of the cost of our products. We still want to be able to show the GST on the ‘Purchase Items’ of the ‘Purchase Order’, because that is what our supplier wants to see. But, as soon as we receive these items, we need to include the GST in the cost, rather than keep it seperate.
If you add GST to the ‘Purchase Invoice Item’, and link these to the ‘Inventory Item’ when you enter a ‘Purchase Invoice’, then the GST portion will be posted to a ‘GST Paid’ expense account, while in fact I want it to post to the ‘Cost Of Goods Sold’. And the cost of the ‘Inventory Item’ will only reflect the amount without GST, while it should include the GST portion as well.
One workaround I see is to change the prices on the ‘Purchase Invoice’ to include GST and clear the ‘GST’ field at the end of the line. It works but is a lot of extra work and prone to errors.
Is there a better way ?