50 % HST Deduction in M & E

Create a bill.  You can call  the vendor ADJUSTMENTS.

Debit the account Non Deductable HST on Meals account (which is a subaccount of meals)

Enter the HST 13% on Purchases, or the applicable tax rate

In the HST box at the bottom, manually change the HST by adding a negative amount

This will zero out the invoice/bill.

If you pull an HST report you will see that the ITC’s will be reduced.

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