In British Columbia (BC), once collected, PST charged to a client via an invoice is paid to the BC government. If paid on time, the firm is entitled to a PST commission in the form of a remittance reduction.
Record a PST Commission
To record a PST commission:
- Create an income account named PST Commission.
- Add an accounts payable bill, bank withdrawal, or credit card charge.
- To the far right of the Account field, click the orange Y.
- On the Split Accounts screen, from the first line’s Account field drop-down, click 2210 PST Collected.
- In the Debit field, enter the amount owed to the BC government before the commission is applied.
- In the upper left corner, click Add.
A second line displays beneath the first.
- From the Account field’s drop-down, click PST Commission.
- In the Credit field, enter the commission amount.
- In the upper right corner, confirm the Remaining Balance equals 0.
- In the lower left corner, click OK.
- Complete the remaining bill or transaction fields, then Save.