Question

Calculating HST on invoices

Forum|Forum|4 years ago
March 11, 2022
1 reply
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Our HST on our invoices being sent out are off by 0.01 to $1.37, depending on the size of the invoice. My understanding is that the HST is calculated by line item and rounded, which is causing quite a few issues when our clients are entering the invoices and they see they are overpaying in HST. The sub totals match but the HST is off. What I don’t understand then is why the bottom of the invoice it says HST 13% calculated on subtotal when it’s not really calculated that way? How can we fix this issue so that HST is correct for all parties? To top it off, it’s other clients using QBO Online that are advising us that the tax is incorrect.

QuickBooks Online

N

Nick K

Hi Shany123.

Having the right sales tax showing on an invoice is crucial to keep your accounts correct. I'd be happy to help you get the correct sales tax showing.

In order to correct the sales tax when it rounds the numbers you'd need to manually change it on the invoice. To do there you'd need to pull up the invoice and scroll to the box under subtotal and discount. In that box you can change the dollar amount that the sales tax is charging then hit save. This will override the sales tax amount on the invoice to what the amount is before the rounding.

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