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donna156
December 15, 2024
Question

Fix duplicate Sales Tax GL Accounts

  • December 15, 2024
  • 1 reply
  • 0 views

Upon setting up the Sales Tax in QBO my employer wanted to use the "exact" same GL # as I was given on the Trial Balance report that was provided.  I had not run QBO previously and came from a Sage background.  So I set up the GL in the same manor Sage would have handled Sales Tax, a GL account for Collected GST and another for the ITC's. So when it came time to file the first Qtr I ran the Taxable Sales Summary Report which showed the breakdown of all the different tax rates collected (sales, zero rated ...etc), this also showed the GST paid on purchases (ITC).  With that data confirmed I continued on with the filing and ran the GST Summary report where I noticed the ITC's were not showing on Line 106, so I thought strange but it allowed me to enter the amount that was reported previously and let me assign this to the GST account I had set up previously.   Thinking this was just how QBO sales tax process worked.  WRONG - this method is not reporting it to the balance sheet and I'm told by the accountant QBO handles the tax accrual in one GL account not 2 and it has pre-assigned account to handle this. Now I have a duplicate sales account and need to delete the one I set up and reconfigure QBO sales tax to preform how it was designed. I'm looking for insight and help on the "How to" on the proper steps to fix this error. TIA for any help that can be provided 🙂

1 reply

T
Trish_T
December 16, 2024

Hi donna156,

 

Welcome to Community.  Understanding the affected accounts for sales tax in QuickBooks Online, is beneficial in keeping your books balanced. 

 

When you apply taxes on transactions, QuickBooks tracks them all in the GST\HST payable account, in the chart of accounts.  After filing sales tax, the amount moves to the GST\HST suspense account. This amount will then hit the bank account once you record the payment or the refund.

 

In order to view the breakdown of the GST/HST collected or collectible for sales and Line 106 Input Tax credits (ITCs) for expenses, you'll want to use the GST/HST detail report. This shows you each transaction that goes into making up the lines on your sales tax filing.  To access this report select Reports on the left navigation menu, then enter GST/HST Detail in the Search field. You'll be able to view the sales tax detail for your sales and expenses.

 

With regards to your accounts in the GL, you can easily clean up the list by merging accounts.  Please be advised that this cannot be undone.

 

Feel free to reach back out, if you have other questions.  We would be glad to assist!

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