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N
neko1
March 4, 2022
Question

Sales tax on deferred invoice

  • March 4, 2022
  • 1 reply
  • 0 views

I would like to know how to treat the GST/HST charged on sales for unpaid invoices. (Invoices from previous year for the current year service)

Our organization invoice members in advance. Let's say the 2022 membership renewal invoice were created and dated in October in 2021. In 2021, we received some payments, and they were recorded in "Deferred" account. in 2022, we still have outstanding invoices. (Hoping that members pay eventually)

In 2022, I assume I need to recognize those payments in the Deferred account by doing a Journal Entry. We still have outstanding invoices. (Hoping that members pay eventually)

 

1 reply

N
Nick K
March 4, 2022

Hi neko1.

 

Being able to enter and track your sales tax is crucial to keep your accounts up to date and your sales tax filings correct. I'd be happy to help point you in the right direction for this.

 

In order to know how to properly enter the sales tax charged on an unpaid invoice I recommend reaching out to your accountant as they are trained in how to do this. If you don't have an accountant no worries, we can help. You can find one in your area by going to My Accountant>Find a pro to help. Once they tell you how to enter this we'd be happy to help walk you through how to enter it in QuickBooks Online.

 

If you have any questions let us know and we'd be happy to help.

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