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snips56
March 16, 2023
Question

Correct HST charge to client

  • March 16, 2023
  • 1 reply
  • 0 views

I operate my consulting business out of Nova Scotia, but have clients in other tax jurisdictions. For the past eight months, I have been invoicing an Ontario client and the application has been programming the sales invoice with NS HST of 15%. The rule I understand is the point of delivery, and so the Ontario 13% should have been charged. Neither we or the client had realized the error until just now and I wish to make an adjustment to their account, crediting them for the overcharged HST and adjusting the tax payable. All examples I have seen so far do not show how to credit the client and to have the adjustment properly associated with the tax report to the Government. Any help on the correct accounts and entries would be appreciated.

1 reply

J
JamesM4
March 16, 2023

Hi snips56,

 

Welcome to the Community. QuickBooks is an easy-to-navigate program that helps you to manage your accounting with ease. I'll be happy to share more info so you're on the right track with your work. 

 

In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. 

 

Let me know if this info helps. Otherwise, feel free to ask questions in the comments below.

S
snips56Author
March 17, 2023

Thank you - I have figured out how to adjust the amounts using credit memos that apparently result in proper adjustment to the HST accounts in the correct reporting periods. However, I have to say here that if I had the time and money to contact an accountant or accounting professional I would likely not be posting in the community forum. I really do appreciate the value of accountants and professional bookkeepers to make more significant strategic financial decisions, but I was just looking for an approach to making some basic entries that won't throw off my reporting.

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