How to Post GST ITC Payments to an Agent’s account

Once the GST has been remitted to The Receiver General follow these steps to post payments to the Agent AR/expense accounts

NB: If your Agent deduction accounts are already in your General/Operating fund skip STEP 1 & 2 and only do STEP 3

STEP 1

• Remit the Balance in the agent’s deduction accounts to your operating/general fund.

STEP 2

• You must create a Journal Entry to the operating/general fund
  • Debit your undeposited Funds account OR your bank account the amount of the cheque
  • Credit your Due from Commission account the amount of the cheque
  • Reference and Description will be GST ITC – Q? And the year ie 12
• Example GST ITC – Q1 12

OR

STEP 3

• Customer Credit Memos must be now made to each agents account.
  • If there are 15 agents on one Cheque then 15 Credit memos must be created
• From the accounting menu select Customer Credit memo
  • Fund = operating fund
  • Customer = Agent
  • Tax group = NON-Taxable
  • Date = posting date
  • Reference = Same as above
    • Example GST ITC – Q1 12
  • In the Lines Grid add a line using the + button at the bottom of the grid
    • Item = GST ITC Payment
    • Description = Same as Journal Entry
    • Example GST ITC – Q1 12
    • Tax Group = Non-Taxable
    • Quantity = 1
    • Unit price = Amount of the GST ITC credit for that particular agent
  • Click Post and New if you have more than one to do
  • Click Post if it is the last one or the only GST ITC credit memo you have to do