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Intuit

How to use reports to troubleshoot problems with sales tax amounts

There are several reports you can use to ​troubleshoot problems with sales tax amounts in QuickBooks Online.

Note: We recommend consulting an accounting professional to determine the root cause of the problem and how to best correct sales tax issues in your records.

Reports to use to troubleshoot problems with Sales Tax amounts

To view all sales tax reports:

  1. From the left menu select Reports, then select All Reports.

  2. Search for the desired report as outlined below.

Look for the following reports:

GST/HST Summary Report (PST Summary, QST Summary, etc.)

This report shows the line by line breakdown of your sales tax return, and allows you to click on the amount of each line to view all contributing transactions

You can use this report to look for delinquent transactions that are affecting your sales tax reporting

Exception Detail Report

This report shows exceptions that will show up on your next filing.

You can use this report to look up the individual transactions, and reference their audit history.

Tax Payable Account Quick-Report

You can use this report find discrepancies between your Payable account and the filings in the Sales Tax Centre. To run this report:

  1. From the left menu, select Accounting and choose Chart of Accounts.

  2. Scroll to find the Tax Payable account
  3. Under the Account history drop-down arrow, choose Run report.
  4. Customize the report to the appropriate dates.
  5. Select the Gear icon to show customization options, then select Show More.
  6. Select Tax Amount and Tax Code box.
Note: The Tax Amount column is the amount that will show in the Sales Tax Centre and the Amount column will show in the Payable account.

Troubleshoot Adjustment Transactions

There are several places you can troubleshoot:

Sales Tax Adjustment

When you're preparing your return, you can increase or decrease all lines relating to your Tax Payable account.

You'll need to specify an adjustment account to offset the change. If you only want to adjust the filing, you can select the Tax Payable account, resulting in a neutral transaction which will not affect your Chart of Accounts

Zero-adjusted filing

If your Sales Tax Centre shows transactions from previously filed periods, and you want to clear them out, you can perform a Zero-adjusted filing.

To do this, adjust all necessary lines to 0, selecting the Payable account as the adjustment account. When the net amount due on the filing reads zero, you can prepare the return to close out the period, remove all of the transactions, and not affect the chart of accounts.

Reversed Tax Return

If you need to re-do or undo a tax return in QuickBooks Online, you'll need to work with your Accountant or contact Support.

This will return all transactions from the filed period (will not bring back exceptions) to the Sales Tax Centre, and create a new reversing Journal Entry to counter-act the filing.

Journal Entries

There are two ways to represent sales tax on a Journal Entry. You can use either of the following:

  • Direct Debit or Credit to Tax Payable or Suspense Account: When changes to Sales tax accounts are recorded this way, without a sales tax code, the transaction doesn't show in the Sales Tax Centre.
  • Sales Tax Code on a Line Item: When sales tax is recorded this way it doesn't show in the Sales Tax Centre. Usually you should only record the tax code on the income or expense line item.

Frequently Asked Questions

Below are some common questions about troubleshooting sales tax on reports.

 

You now know how to use reports to troubleshoot problems with sales tax amounts.