We received inventory in the IC and recorded the GST in the receipts function of IC. The amount before tax is 430 and was DR to inventory and CR to AP.

WE retreived the batch into AP and 451.50 came up....just as a total without showing the 21.50 in GST.

i can print the tax tracking report and see the GST, but when i pull my IC and AP batches into the GL I don't ever see 21.50 in GST going as a DR into GST ITC account.

Do we have to do the GST as a manual entry...am i missing something?????

Thanks

Hi Laura,

In the tax table you set up in Adagio Inventory, do you have the option for 'Include Tax in Cost' selected? If you don't, then there is a place to enter in the Tax GL account for the jurisdiction. When Day End is run in Inventory, this tax account will be debited (and the credit offset goes to AP clearing). The Tax Summary and Tax Tracking reports in Inventory will have this information.

When the invoice is retrieved into AP, indeed the full amount (item plus tax) is going to the AP clearing account, because the tax is already dealt with in IC. AP will not record taxes generated from IC.

If you have the 'Include tax in cost' option enabled in the IC tax table, then instead of a tax GL account getting the debit, it goes instead to the Inventory GL account.

So you don't have to manually deal with GST, as IC does this.