Handling Sales Tax as a vendor

Discussion about using the MoneyWorks Job costing system.
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facelift
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Handling Sales Tax as a vendor

Post by facelift » 02 Feb 2008 07:34

Ok, here is something I will need help with. Until now I have been doing jobs, providing services which are taxed gst only at 5% and any supplies such as hardwood flooring get charged 8% sales tax and 5%gst.
Today I filed for a vendors Permit and will be tax exempt on the 8% at time of purchase. What this means is when I pay the government the 8% it will only be based on my purchase price. However, when I create a quote or sales order to do work in someones house, any supplies purchased specifically for that job will be marked up and the tax is entered into Money Works based on that mark up price. Do you see what my dilemma is? At tax time, Money Works is going to indicate I owe the government more tax than I actually do. How should I set it up so that my customers pay me the tax on the marked up price, but I only pay the tax to the government on my purchase price?

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mikeguil
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Post by mikeguil » 02 Feb 2008 16:02

PST is charged on the final price of the sale item to the end user. If you have the Vendor's Permit, you won't be paying the 8% on goods for resale. So the PST remitted to the gov't is based on the selling price to your customer, not what you paid for it.

facelift
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Post by facelift » 03 Feb 2008 12:23

Ok, so I don't have to change anything with the way Money Works is set up. By the way, how are you Mike? Thanks so much for getting me involved with MW, saving me from the waste land called Quickbooks.
I'm still a bit fuzzy on the other question I posed to the forum. I was instructed to use the sales order form instead of the Quote, and then every line item would be transfered to the invoice at the end of the line, and I would not have to re-enter those items into a job sheet first. I guess I've gotten a little spooked because the sales order form looks like it is meant to be used for tangible items sold, and not services, but I may be wrong on that one. You said to make up a quote and then turn it into a sales order. How do I do that?
Thanks for your comments and insight, as usual. This is a full fledged accounting package. In will take me some time to really find my way around and you are correct, it is a pain to have to start over and enter everything and get it all set up. But, I only have to do it once and I'm already on my way.

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mikeguil
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Post by mikeguil » 04 Feb 2008 08:20

Personally, I rarely use the quote function. I've been using the Sales Order as a way to track customer orders and then convert these to either a cash sale (COD) or invoice. It didn't occur to me that they are set up for product rather than service. I have most of my services set up as a product item. This makes it easier (for me) to enter the service item. I input a 'product' number and my service description pops up.

So.. and someone please correct me if I'm wrong, if you catalog your services with a product number (of some kind), this may work well for you.

Any other suggestions - anyone?

facelift
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Post by facelift » 13 Feb 2008 19:11

I have another problem. I have a contractor. I get multiple jobs from him. I don't see any way in Money works to distinguish each job. With Quick books I could specify a new job. How does one do this with MW?

Straightline
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Creating new jobs

Post by Straightline » 14 Feb 2008 03:31

facelift wrote:I have another problem. I have a contractor. I get multiple jobs from him. I don't see any way in Money works to distinguish each job. With Quick books I could specify a new job. How does one do this with MW?

Page 123 in the manual.
Dave

facelift
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Post by facelift » 14 Feb 2008 17:32

Dave, I don't see how page 123 answers my question. This is becoming very confusing and illogical for me. In my previous program I could click on a customer name in my "debtors" list and set up a new job with a different address. There is no clear way I can see to do this in MW. Jumping ahead to set up a job, as you indicate, seems out of sequence with this program, which indicates to provide a quote and THEN create a job when that quote is accepted. You see, this has become very cloudy. I was told that creating a sales invoice is exactly the same as using a quote. If they are exactly the same, why are they both part of the program? The sales quote still looks very much like a sale of products to me, and not services. If I make up a sales quote, it won't create a job. I make up quotes or estimates (are they the same thing in MW, because at this point, English has lost all meaning) and when the quote is accepted I can logically call it a job. At that point I can turn the quote and job into an invoice. However, if I take this route, I have to re-enter all my data from the quote into a job sheet so it will appear in the invoice! That is just mindless repetition. If I go the sales route, every time I open that it comes up with "Product" hi-lighted which is exactly my point. The sales quote is for selling product not services and is not exactly equivalent to a quote.
My point is, this program does not seem logical nor user friendly. I should not have to be an accountant. I am a tradesman. I can't even find a simple way to indicate that I have another job for contractor 1 at a new address.
To read the help files, I will go round and round in circles until I have forgotten the question. For what I spent for this, I am not a happy guy.

Straightline
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Creating new jobs

Post by Straightline » 15 Feb 2008 03:35

Faselift

I think I know where you are coming from but I am off to work right now and will have to think about a course of action you could take. In any event, there must be others on the group who have dealt with this problem and would be able to give you a few pointers. Will check the thread tonight after work. What version of MW are you using?
Dave

Straightline
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Creating new jobs

Post by Straightline » 15 Feb 2008 13:11

Facelift
I took my manuals to work today and it looks like you will need Money Works Gold to have the "convert quote to job" feature that you are looking for. Now that I have studied the concept, it is something I will start using.

Dave

charleshorse
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Jobs and Sales

Post by charleshorse » 16 Mar 2008 18:06

Facelift, the Job system in MoneyWorks can be used for either back-costing a quoted job, or billing on a time and materials basis.

The way you describe things (you enter a quote, then want an invoice exactly the same, but don't want to enter the actual time and materials used), there is no point in making a job. Just convert the quote to a sales order and bill it out.

If on the other hand you want to track your actual expenses and time against the quote, then you convert the quote into a job. The Quoted items become the job budget, and you enter what you actually used against the job. This allows you to see how good or bad the quote was as to your estimate of what was required. You can bill this out from the job system -- normally a single line invoice "As per Quote" should be enough (just adjust the amount billed to be the quoted amount in the bill job screen -- the difference is how much you over/under estimated).

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