As a default, CosmoLex tracks collected GST/HST in the 2201 GST/HST Collected General Ledger (GL) and taxes paid in the 2202 GST/HST Paid GL.
However, many firms prefer tracking all tax amounts collected and paid in one GL account.
This article will outline how to set up CosmoLex to track these taxes in one combined GL account, how to print the combined report, and where to find the tax return line item information on the combined report.
Set Combined GL Account as Default
The system defined combined GST/HST Collected/Paid GL Account is the 2200 GL account.
To have the system automatically record all taxes collected and paid to that GL account, change the system default tax accounts:
- From the left navigation panel, click Setup.
- From the Setup left navigation, click Firm Settings.
- From the tabs atop the Firm Settings screen, click Accounting.
- Scroll to the bottom of the screen and locate the Default Accounts for Sales & Service Taxes section.
- From the Firm Collected GST field’s drop-down, click 2200: GST Collected Paid (Other Current Liability) and then click the check mark to save the change.
- From the Firm Paid GST field’s drop-down, click 2200: GST Collected Paid (Other Current Liability) and then click the check mark to save the change.
This only changes the default tax accounts going forward. All taxes collected and paid that were previously recorded in 2201 GL and 2202 GL will remain in those GLs.
Consult with your accountant to determine whether you must create a journal entry or change CRA payments/refunds to adjust past reporting.
Print Combined Report
The amounts listed in this report are only accurate if you take these actions:
- Record the payment to CRA through an AP bill, credit card charge, or withdrawal dated for the end of each quarter.
- Record any refunds received in a different account than the combined 2200 taxes paid/collected GL account.
To print the combined GST/HST report:
- From the left navigation panel, click Reports.
- From the Reports left navigation, click Accounting.
- Click General Ledger.
- From the Print as field’s drop-down, click your desired report format.
- From the Chart of Account field’s drop-down, click 2200 GST Collected/Paid (Other Current Liability).
- In the upper right corner, click Download.
The system downloads the report in your designated format to your designated location.
Locate the Tax Filing Line Items
| Line 105 | Total amount shown in the credit column |
|---|---|
| Line 108 | Total amount shown in the debit column |
| Line 109 | Ending balance shown on the General Ledger |
Record CRA Payments
To record a CRA payment to the combined account:
- From the left navigation panel, click Setup.
- From the Setup left navigation, click Firm Settings.
- From the tabs atop the Firm Settings screen, click Accounting.
- Scroll to the Default Accounts for Sales & Services Taxes section.
- From the Firm Paid GST field’s drop-down, click 2202 GST Collected/Paid (Other Current Liability) and click the check mark to save your change.
- Create an AP bill, credit card charge, or withdrawal with these parameters:
-
- Bill or withdrawal date as of the last day of the tax quarter in the full amount owed to CRA.
- Select the GL 2200 GST/HST Collected/Paid account.
-
- Return to Setup and restore the tax default to the 2200 GST/HST Collected/Paid GL.