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H
howie2
November 27, 2019
Question

Unapplied Cash Bill Payment Problem

  • November 27, 2019
  • 1 reply
  • 0 views

The problem with the unapplied cash bill payment expense is that it shows up on the profit and loss statement. The company works under a cash basis where everything is paid when owed. We never use bills.
However, on the profit and loss if the statement is set as the cash accounting method, the unapplied cash bill payment expense shows up. It only disappears when I set it to accrual basis.

I've narrowed that the unapplied cash bill payments relate to entries to a "GST Paid" liability account that I created myself. I didn't want to use the Quickbooks module for GST which is the reason I created a liability account for this.

At the end of the month when I remit the GST I will credit the bank and debit this "GST Paid" account. 

However, since all my purchases that I post through the bank have GST and I've booked it to this "GST Paid" account, Quickbooks is considering all of these as unapplied cash bill payments.

How do I fix this? Why am I forced to use the Quickbooks module of GST if I can just create my own liability account?

 

1 reply

J
JamesM
November 27, 2019

Hi there,

 

Welcome back to the Community. I'll be happy to share more info about the cash bill payment. 

 

It's good you've created your own liability account. Since you prefer using that account, you'll just have to add it as a line item to each transaction. For example, expenses can be entered this way:

 

Line 1 - The expense

Line 2 - GST (Liability Account)

 

It's also important that you're making GST payments as expenses. This is so that when you pay the GST paid account, you'll just enter a regular expense with the GST paid account selected as the line item. 

 

Let me know if you have questions about this, I'll be here to help. 

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