Hello there, @erinmbenesch.
Allow me to help share some insights about creating journal entries in QuickBooks Online (QBO) for Canada.
When creating journal entries for purchases that include sales tax will not affect the Sales tax you owe. Instead, you need to process sales tax liability adjustment if there's discrepancy amount to correct it.
To adjust the sales tax liability in QBO, you can follow these steps:
- On the left menu bar, select Taxes.
- Click Sales Tax at the top, then choose the tax agency associated with the return.
- Select the Returns tab, look for the line item for the sales tax you want to adjust, and choose Prepare Return from the Action column.
- Look for the sales tax line you want to change, and select Adjust.
- Choose an Adjustment Date and Tax Rate.
- Select an account from the Adjustment Account drop-down menu.
- Choose an income account if you owe less sales tax because someone failed to pay. Go with an expense account, such as Interest Expense or Non-deductible Penalties when owe the CRA more money in taxes.
- Enter the adjustment amount in the Amount section.
- Click the Save button to save the adjustment to your records.
If you need further assistance with the steps, I recommend contacting our QuickBooks Online Support Team. They have additional tools to pull up your account and do a screen-sharing.
Here's how to contact our customer support:
- Sign in to your QuickBooks Online company.
- Select Help (question mark icon) at the top right.
- Select Contact us to connect with a live support agent.
Don't hesitate to leave a comment below if you have other questions about the sales tax. I'd be happy to answer them for you.
