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GST exceptions and reports in QuickBooks Online

by Intuit• Updated 2 years ago

When preparing a Business Activity Statement (BAS), you may see the following alert:

What are GST exceptions?

The amounts in this report represent transactions you have previously filed or lodged, but have since changed, deleted or added. This is to ensure that no GST collected (or credits earned) are missed or duplicated.

A few reasons for exceptions are if you make changes to:

A transaction in a filed period. For example, one that has been added, edited or deleted.
A GST code. QuickBooks will factor the difference between the amount filed and the new value, sometimes this can be a net 0 difference. For example, changing GST code 0% to be Exempt.
The amount. QuickBooks will factor the difference between amount and filed and the new value.
An income/expense account line. The net 0 difference will show.
A customer/supplier. The net 0 difference will show.

How to create exceptions in QuickBooks

To create an exception:

Delete a transaction to create a negative exception value
Create a transaction to create a positive exception value
Add another line item to an existing transaction
Remove a line item to an existing transaction
Change a GST code (this may cause positive or negative exception values)

If you are unlodging a BAS and need to create exceptions, you may want to consider moving them into your current BAS period, and setting the correct date once changes to the BAS have been made.

Can I view the transactions that contribute to exception amounts?

Yes! To view the exceptions that are part of a BAS:

Select GST from the left hand menu.
Then, click Run reports and select GST Amendments. This will give you line-by-line, transaction-by-transaction details for your exceptions.

If you want to see all the changes made to a transaction showing on the exception report:

Go to the transaction and select More.
Select Audit history.

Remember to keep the date of your GST filing in mind so that you can see when the edit or change happened to the transaction.

Note: You can choose between the Cash and Accrual accounting methods to report your income and expenses from the exception report. If you want to include money that you've already paid or received, select the Cash accounting method. If you want to include open invoices and bills in the report, then select Accrual.

Some exceptions cancel out and look to be for the same transaction, what does this mean?

If you delete and recreate a transaction for a previous period, then your exceptions will show both changes as exceptions but will net out to zero. This is also caused by editing and saving a transaction, even if the line item in question was not changed. This is perfectly normal and should not affect the balance of your filing.

If you've made a change that doesn't impact the overall value of the transaction (for example, customer or supplier, or income and expense account), you will see a $0.00 rated amount on your GST amendment report. You'll also see this rated amount if you delete and re-add a transaction in a filed period.

What if I need to change the amount of my filing in QuickBooks Online and there are other factors that need to be accounted for?

If required you can amend (edit or delete) or add any necessary transactions before you file your BAS.

Before creating an adjustment, speak to your accountant or bookkeeper (if necessary) to ensure your reports are correct after the adjustment. They can view these adjustments or previous adjustments by going to the chart of accounts and searching for the accounts you've made adjustments to.

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