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M
moran
March 30, 2020
Question

How to enter a refund on an already paid HST return

  • March 30, 2020
  • 1 reply
  • 0 views

Hi, I have a conundrum I would like some help with please.

In February 2020 I filed the GST/HST returns for two periods in one day: July-Sep 2019 and Oct-Dec 2019.

I paid the amounts owing for both of them also on that same day.

Because the Jul-Sep return was late, Revenue Canada, instead of applying the second payment to the Oct-Dec return, applied it to the late penalties now owing on the Jul-Sep return and issued me a cheque for the balance of my payment.

I e-deposited that cheque to my business account, which now shows up in the 'banking' area of my QB Online as a payment and auto-assigns it to one my accounts receivable customers.

My conundrum is how to show all of this in QB?

I spent 4 hours on Friday with a QBs expert using screen share trying to accomplish this, but it's still showing in my 'banking' area as a payment from a customer.

1 reply

A
AndréB12
March 30, 2020

Hi moran,

 

Using the bank feed in conjunction with the sales tax centre is the best way to ensure your taxes are always filed accurately. QuickBooks Online uses some advanced tracking in the background of each transaction to provide you with consistent results and tax returns you can rely on. Making sure each transaction is recorded correctly is not only a great habit, but it also unlocks the full power of this feature to save you time. I'll be happy to help you sort this out. 

 

Something to bear in mind when using the bank feed is that downloaded transactions in the For review tab have no effect on your books until they're added. The bank sends us information about the Date, Description, Account, and Amount of each transaction. This is used by the system to provide suggestions on how to add this based on previous, similar transactions. Simply click on any field that's incorrect to change it. 

 

The ideal way to record this refund depends heavily on how you recorded the payment. If the payment was recorded as an over payment in the tax centre, we can record the refund the same way. It sounds like the late filing penalties were deducted directly from this amount. This is something we can easily record in just a few steps (this solution assumes the payment has already been recorded in the tax centre: 

  1. Head to Taxes then Sales Tax.
  2. Next to the Oct-Dec 2019 return, click on the dropdown and choose Record refund.
  3. In the Refund to field choose Undeposited Funds regardless of which account you received the refund in.
  4. In the amount field, enter the full amount of the Oct-Dec return (we'll record the fees later).
  5. Click Record refund.
  6. Now click the + New button and select Bank Deposit.
  7. Select the appropriate bank Account where the funds were received and the Date.
  8. Since we recorded the refund into Undeposited Funds, you can select it in the Select payments included in this deposit section.
  9. In the Add funds to this deposit section, choose the expense account you use to track late filing penalties.
  10. Enter the amount of the penalties as a negative. This decreases the total, so it'll match with your bank transaction.
  11. Click Save and close.

Once you've completed these steps, you should have no problem matching the transaction from your bank feed. If QuickBooks doesn't automatically detect this deposit, click on Find match to search for it. 

 

Let me know how this goes! I want to make sure you're able to continue benefiting 

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