I found this thread as I was looking for a better way to record our crop income with our drying and check off fees from the grain elevator deducted from that income. Our accountants have it set up a certain way which gets the job done but has some drawbacks which was my reason to see how other people are entering these types of payments. The way they have it set up for us is that when I receive a payment for our crop income I record it as an invoice first. I enter the total crop income (for us this is non-taxable), in the "account" section of that line item I use an income account called Farming. To enter the drying and check off fees I enter that as another line item on the invoice using an expense account called Farming - Expense, I enter the expense in the "rate" section as a negative number, this line item of the invoice does have HST (we're in Ontario) applied to it. At the bottom of the invoice in the area where it totals everything the HST section is shown as a negative number with the total amount mirroring the total amount I was paid from the grain elevator. From there I apply my payment received to that invoice and then can deposit the amount into the appropriate account. Upon reading this thread I became worried that doing it this way we might not have been entering the HST paid properly and thus not claiming it on our quarterly HST filings. I took a look at our GL and it does appear that doing it this way is recording the tax paid correctly. The drawbacks to this method is that although the invoice you have created appears to be paid in the customer center and on the invoice itself, when you go to the apply payments window to this customer account it shows that all invoices are outstanding, and when you "Assess Finance Charges" this account always shows up with a balance owing and thus the software always wants to add finance charges to it. Although those small details bother me (perfectionist over here), this method is working for us and I can enter the payment in less than 5 minutes. I thought I would share in case it helps someone coming across the same issues. If anyone has come up with a better way that is just as easy to enter, please share!
