PST and GST Tax Table Setup Sage 50

Sage 50 PST and GST Tutorial

First, You need to create a PST Payable account in the chart of accounts. In home screen click on chart of accounts-file-create. In the current liability section, 2000 series account, create your account number and the description should be PST Payable and The account Type should be general. Save and close.

You should be back at home screen. Click on setup-settings-company-sales tax-taxes.
In the tax colum type PST and in the account to track tax on purchases and sales columns choose the PST Payable account number you just created.

Next step- click on tax codes on left side of screen. In the code colum type PG and in the description type PST and GST on sales and in use in colum drop down menu or double click and choose sales.

Last step, double click in PG you just typed in the code colum. In tax colum type PST , rate colum type 7, included in price choose No and is refundable choose Yes.
Second line, in tax Colum choose GST , in rate colum type 5 , included in price choose No and is refundable choose Yes.

For your convenient a complete tutorial can be found in a pdf format by clicking on the follwoing Link.

PST and GST Setup

What is Margin and Affect on Income Tax

What is meant by Margin on a business financial statement and how it affects income tax.

Margin is gross revenue less cost of goods sold. (COGS)

Gross revenue is revenue before any expenses and cost of goods deducted.

Cost of goods sold is the product purchased for the purpose of selling that product.

Now that we have an idea of what gross revenue and COGS is, let’s continue to figure out the margin.

EX:

Gross revenue                    $250,000.

Less: Discount                      $50,000.

Total Gross Revenue           $200,000.

Less: Cost of Goods Sold     $100,000.

Total Gross Revenue           $100,000. this is the margin (revenue less COGS)

Expenses:

Wages               $30,000.

Heat                     1500.

Rent                   15,000.

Total Expenses    $46,500.

Net Income         $53,500. This is your net income and taxable income.

You need to have a healthy margin so the business can pay for overhead expenses such as rent, heat, wages etc and pay you, the business owner as well.