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Wendy LM
August 14, 2019
Question

Stop retainer being included in HST report

  • August 14, 2019
  • 1 reply
  • 0 views

I've set up the retainer as an item and the amount goes to a current liability account and there is no HST. This all works. When I produced the HST report it was being included in line 101 sales. How do I stop this from reporting?

I've done the same in QuickBooks Online version, using the "Out of Scope" tax code fixed it there.

1 reply

J
JamesM
August 14, 2019

Hi Wendy LM,

 

Congrats on your first Community post! I'll be happy to steer you in the right direction and figure out why the retainer's showing up on your HST report. 

 

First, I want to make sure we're on the same page. What tax code did you use for the retainer in Desktop? 

W
Wendy LMAuthor
August 15, 2019

The retainer is coded as "E" - exempt.

M
Mark_R
August 15, 2019

Thanks for getting back to us, @Wendy LM.

 

In QuickBooks Desktop (QBDT), you can manually change the tax code to "Non-Taxable Sales" when creating a transaction using the retainer item. This way, it'll not be included in your HST report. Let me guide you how.

 

  1. Go to the Customers menu.
  2. Select Create Invoice or Enter Sales Receipt.
  3. Choose the customer.
  4. Enter the necessary information.
  5. In the Tax column, change the tax code to Non-Taxable Sales.
  6. Click Save & Close.

After which, the retainer item will stop being included in your HST report. 

 

If you want to exclude the previous retainer item that included in the report, you can find and edit the tax code of each transaction.

 

Here's an article you can read for more information: How to Set up Sales Tax in QuickBooks Desktop.

 

You might also want to check out these articles for your future reference:

 

Please let us know if you have any other concerns. We're always here to help.

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