GST rebate asset

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neac
Posts: 59
Joined: Mon Jan 28, 2019 8:26 am

GST rebate asset

Post by neac »

In powerchurch, we have 2 funds: 01-General and 02-Designated
The designated funds are funds are marked for specific use, such as building/capital projects and missions.
Inside both funds, we have an asset: GST rebate. Where we are in Canada, we can reclaim 50% of the GST on expenses from the government.
The GST asset in fund 02 keeps accumulating and I don't think anyone has ever applied any part of any rebate that we've received to it.
I am wondering if (and how) I can merge the two asset accounts into one inside the general fund. My thinking is that with only one GST rebate asset, when we receive the rebate and apply it to the asset, it should theoretically zero the account without having to apply some to each fund.
Is this something I can/should try to do?

NeilZ
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Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA
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Re: GST rebate asset

Post by NeilZ »

neac wrote:
Wed Jan 06, 2021 1:20 pm
In powerchurch, we have 2 funds: 01-General and 02-Designated
The designated funds are funds are marked for specific use, such as building/capital projects and missions.
Inside both funds, we have an asset: GST rebate. Where we are in Canada, we can reclaim 50% of the GST on expenses from the government.
The GST asset in fund 02 keeps accumulating and I don't think anyone has ever applied any part of any rebate that we've received to it.
I am wondering if (and how) I can merge the two asset accounts into one inside the general fund. My thinking is that with only one GST rebate asset, when we receive the rebate and apply it to the asset, it should theoretically zero the account without having to apply some to each fund.
Is this something I can/should try to do?
You really can't 'merge' the accounts, you can transfer the listed funds from Accounting Fund 02 to fund 01. Not knowing how the rebate works, there's not much more I can recommend.

However, if the account 02 is only used for restricted stuff, you could have created temp restricted accounts in fund 01 and eliminate all this. A bit late now, but something to consider in future.
Neil Zampella

Using PC+ since 1999.

neac
Posts: 59
Joined: Mon Jan 28, 2019 8:26 am

Re: GST rebate asset

Post by neac »

Thanks Neil, looks like I may be writing up a SOP for how to transfer the funds and enter the rebates into PC.

In terms of how the rebate works: for every expense where GST was paid, we enter the full amount of GST paid and PowerChurch is set up to automatically take 50% of the amount entered and debit the GST rebate asset account. There are two periods per calendar year the rebate can be applied for: Jan.-Jun. and Jul-Dec. For each period, I would run a report that tells me the amount in the asset account for the period (I use the trial balance to get this, also subtracting any previous rebate amount received if applicable). I would then fill out an application form with this amount and send it to the government. A few weeks later they will deposit this amount into our bank account, at which point I will need to make an entry in PowerChurch crediting the GST rebate asset account, debiting the bank account.
Not sure if that helps.

I haven't tried applying for a Jan-Jun rebate before the calendar year ends, so I don't know if they would accept it. I also had to apply for 3 years worth of rebates because no one did it the 2 years before I took over the treasurer position.

NeilZ
Posts: 9421
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA
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Re: GST rebate asset

Post by NeilZ »

neac wrote:
Wed Jan 06, 2021 11:37 pm
Thanks Neil, looks like I may be writing up a SOP for how to transfer the funds and enter the rebates into PC.

In terms of how the rebate works: for every expense where GST was paid, we enter the full amount of GST paid and PowerChurch is set up to automatically take 50% of the amount entered and debit the GST rebate asset account. There are two periods per calendar year the rebate can be applied for: Jan.-Jun. and Jul-Dec. For each period, I would run a report that tells me the amount in the asset account for the period (I use the trial balance to get this, also subtracting any previous rebate amount received if applicable). I would then fill out an application form with this amount and send it to the government. A few weeks later they will deposit this amount into our bank account, at which point I will need to make an entry in PowerChurch crediting the GST rebate asset account, debiting the bank account.
Not sure if that helps.

I haven't tried applying for a Jan-Jun rebate before the calendar year ends, so I don't know if they would accept it. I also had to apply for 3 years worth of rebates because no one did it the 2 years before I took over the treasurer position.
OK ... that's not complicated at all ... :)

In this case, I think that the transfer of the 'asset' from the second accounting fund to the first would cover this. Again, I'd think about moving the restricted accounts under the operating and releasing from there would be a good idea. Then again, I suspect that you have two separate bank accounts, in that case, you'd have to figure out what amount would be assigned to Fund 01 and what to Fund 02.

Wish I had better advice on this one.
Neil Zampella

Using PC+ since 1999.

neac
Posts: 59
Joined: Mon Jan 28, 2019 8:26 am

Re: GST rebate asset

Post by neac »

We only have one bank account.

NeilZ
Posts: 9421
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA
Contact:

Re: GST rebate asset

Post by NeilZ »

neac wrote:
Thu Jan 07, 2021 4:29 pm
We only have one bank account.
In that case ... I would definitely consider moving the restricted to the one fund as you can then handle all that under Operating without having to worry about this in future.
Neil Zampella

Using PC+ since 1999.

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