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Kaja
December 18, 2020
Question

Overpayment of GST remittance. How to record this?

  • December 18, 2020
  • 1 reply
  • 0 views

Hello

 

I have paid the GST remittance for last quarter before I started using QuickBooks. While I was entering all my old receipts into the system I have noticed that I have a few invoices/receipts paid from last quarter that I didn't count in. Now it looks like I overpaid GST ($70). 

Now, I have entered those forgotten receipts and I thought it is going to adjust itself but it didn't. In fact the difference between QB and my manual counting for this quarter is not even $70 (maybe a made mistake somewhere else)

My question is: do I enter this $70 as an adjustment when I will be paying for this quarter in January? Can I adjust it anytime before end of quarter?

 

I am using QuickBooks Desktop 2021

 

Thanks

Kaja

1 reply

PatriciaT
PatriciaT
December 19, 2020

Hi Kaja,

 

Welcome to the community! The sales tax centre in QuickBooks Desktop is one of the most robust features in the program to help you accurately track every sales tax you collect and pay. I know how important it's to ensure accuracy across your books. I'll be happy to point you in the right direction with this.

 

If you haven't yet filed your previous quarter period in the system, recording new invoices/receipts in that period will affect your tax due amount as long as you select active sales tax codes on your transactions. I encourage you to double-check on that to make sure your transactions were saved with the proper sales tax code, which appears as active in the sales tax centre. In case you filed your tax return in the program, recording new transactions for that period will appear as exceptions in the next return. This takes automatically into account the under or overpayment so that your next tax due amount is adjusted for you. To know whether you need to make a sales tax adjustment in your case or how to record it, I'd recommend reaching out to an accountant. Accountants are incredible resources to ensure that everything's lining up correctly in your books. If you don't have an accountant, you can easily connect with one around your area on our Find-a-ProAdvisor website.

 

Here are a few articles you may also found useful.

I hope this helps! Don't hesitate to reach out if you need anything else.

K
KajaAuthor
December 19, 2020

I should have added that when I filed sale tax I couldn't change the amount (to what I actually paid).

To make it simple let's say QB showed I have $400 to pay and I actually paid $470 a week before. Then I found a couple of receipts with total of $70 GST paid and I entered them in to the QB. That means I overpaid $70. Now, when I filed sales tax in QB I could not change the amount to $470 so it shows the amount paid of $400. I could change it in a bank feed somehow.

Any ideas?

L
LauraAB
December 21, 2020

Thanks for those additional details, Kaja. Based on what you've said now, it sounds like you may have filed sales tax in QuickBooks Desktop before the $70 was accounted for. Once you entered the transactions that make up the $70, those would have been added as exceptions since the filing period had been dealt with already and you cannot add new calculations to it. The exceptions would get added to the next period.

 

If that's the case, one thing you can consider is deleting the filed return for that sales tax period, which would open it up again and should include the $70 with the other $400. Here's another post where I guided another user through the appropriate steps to take to do delete the return: How do I unfile a sales tax return in QB Desktop (Canada)

 

As my colleague mentioned, this is a good opportunity to connect with an accountant. While QuickBooks Team members like us can advise you on the ways the features in the program work, we cannot advise you on how to handle your books from an accounting perspective. An accountant will be able to let you know if this is the best way to handle the situation or review your books with you to see what you may need to make changes to correct the amounts you're seeing. I highly recommend taking advantage of that option.

 

Wishing you the best!

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