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C
CathyDCC
August 18, 2024
Question

How to correct HST payment recorded as cheque expense

  • August 18, 2024
  • 1 reply
  • 0 views
A recent HST payment was recorded as a cheque expense and not done through Sales Tax module.  
How can this be corrected to clear the sales tax module?  Cheque has cleared and been reconciled through the bank.
How would I make future payments for HST through the sales tax module and record the cheque payment?

1 reply

M
MJ_R
August 19, 2024

Hi CathyDCC,

 

Welcome to the Intuit Community! QuickBooks Online Sales Tax feature, enables you to prepare, file and record your payments.  It's important that you're able to create the payment method and submit it on time.  I'd be happy to help!

 

To correct an HST payment recorded as a cheque expense in QuickBooks Online and ensure it clears the Sales Tax module, you can follow these steps:

 

 

Correcting the HST Payment

Delete the Incorrect Cheque Expense:

  • Go to the Expenses menu.
  • Find and select the cheque expense you recorded for the HST payment.
  • Click on More at the bottom and select Delete.

Record the HST Payment Correctly:

  • Go to the Taxes menu and select Sales Tax.
  • Click on the Filings tab and locate the tax filing you need to correct.
  • Select Record Payment from the dropdown menu next to the filing.
  • Choose the account you are making the payment from and enter the payment details.
  • Ensure the payment is categorized correctly under the appropriate tax account (e.g., GST/HST Payable).

 

Making Future HST Payments

Go to the Sales Tax Module:

  • Navigate to the Taxes menu and select Sales Tax.

Record the Payment:

  • Click on the Filings tab and find the tax period you need to pay.
  • Select Record Payment from the dropdown menu next to the filing.
  • Enter the payment details, including the bank account and payment date.

Write the Cheque:

  • Go to the + New button and select Cheque.
  • Fill in the cheque details, ensuring it matches the payment recorded in the Sales Tax module.
  • Save and print the cheque if needed.

By following these steps, you can ensure that your HST payments are correctly recorded in QuickBooks Online and clear the Sales Tax module.

 

I hope this helps! If you have any other questions, feel free to reply below.

C
CathyDCCAuthor
August 20, 2024

Thank you for this information.

Firstly, the expense cheque that was written has cleared our bank and been reconciled, so I'm presuming I would have to unreconcile it to delete as the first step, or can I leave that part of the entry and just record the payment in the Sales Tax module?

Could you explain the entries that occur when you select Record Payment in the Sales Tax Module? Does it involve crediting the bank with the payment made since part of the process is to select the bank account used for the payment. 

My apologies for so many questions!

 

T
Trish_T
August 20, 2024

Hi CathyDCC,

 

After you've deleted the expense for the HST payment, you'll proceed to follow the steps provided by my colleague, and record your sales tax payment.  Please make sure the payment date is accurate and aligned with your bank account.  Then follow these steps to mark the transaction as reconciled, so your account remains balanced;

 

1. Go to your Settings ⚙ and select Chart of accounts

2. Find the account holding the transaction, then select Account history in the Action column

3. Select the transaction you want to reconcile to expand the view.

4. Review the ✓checkmark column

5. Click in the checkbox, to change the letter until you see an R. This marks the transaction as reconciled

6. Hit Save.

You're all set!

 

Feel free to let us know if your questions have been resolved.  Your success is our number one priority, and we are always glad to help!

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