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How to correct exception errors in QuickBooks Online

by Intuit•1• Updated 2 years ago

Here's how to find lodged transactions that were deleted by customers using the cash-based method to prepare their Business Activity Statement (BAS). We'll show you how to then calculate and create the adjusting journal entry to account for the GST accordingly in QuickBooks Online.

Step 1. Find your last lodgement date

To determine which transactions you need to create an adjustment for, you'll need to note when your last lodgement period was in QuickBooks Online.

Go to GST, and then select History.
Make a note of the most recent lodgement in the list. For example, January–March 2022.

Step 2. Identify the affected transactions

Next, you'll need to find and review the transactions that were deleted.

Select the gear icon in the top right corner.
Under Tools, select Audit Log.
Select Custom and enter the dates from 11/05/2022 to 9/06/2022.
Select Deleted/Voided Transactions.
Find the deleted transactions that need adjusting.
If the transactions show on the list, select View.
Select the arrow next to View BAS summary to show more details.
Take note of the transaction amounts which incurred GST and the amount. We recommend you document these in a spreadsheet application like Excel or Sheets.
Select Back. Repeat the process for all deleted transactions.

How do I know if an exception should've been deleted?

An exception is created when a transaction is deleted or modified which has already been reported to the Australian Taxation Office (ATO).

Example 1. An exception should have been created

There was an expense created on the 15th of December 2021 for $50. This was then reported to the ATO on the 13 January 2022, when the October–December 2021 BAS was lodged. Then on 15 May 2022, the transaction was then deleted. As a result, an exception needs to be created for your next BAS to adjust for the changed figures of the previously recorded BAS.

Example 2. An exception should not have been created

If you deleted an expense on the 15th May 2022 for a transaction that occurred on the 12th of February 2022, but you had not yet lodged your January–March 2022 BAS, there would be no need for an exception to be created as you had not yet reported that information to the ATO.

Step 3. Calculating the adjustment totals

When determining which deleted transactions need to be accounted for, it'll be transactions that were previously included in the BAS. More importantly, the process will be slightly different depending on whether you have either sales transactions (like sales receipts) or expense transactions (like expenses).

If you have sales transactions

Firstly, add up the total amount of transactions which includes GST. If you have multiple transactions, we recommend using Excel, Sheets or a calculator to calculate the total. To create the adjustment journal:

Select + New and choose Journal Entry (in the Other column).
Edit the Journal date to a day before your last lodgement date. For example, if your last BAS lodgement was for the period ending 31 March 2022, you'd make the journal date 30 March 2022.
Select Inclusive of GST.
In the first line, select the Account you would normally allocate income to, such as Sale of Product Income.
Next, enter the total amount you calculated into the Debits column.
In the Description column, enter BAS adjustment.
In the GST column, select GST (10% Sales).
Next, in the second line, select the same Account you selected at step 4.
Then enter the same amount into the Credits column and enter BAS adjustment in the Description column.

10. Select Out of Scope (Sales) in the GST column.

11. Select Save and Close.

12. Select Yes to confirm the creation of the Adjustment.

Important: You'll see a notification asking you to confirm the adjustment. If you don't, it means that you haven't selected an early enough date and you'll need to edit the date to an earlier date.

Once complete, your GST exception will be accounted for and included in your next BAS.

If you have purchase transactions

Select + New and choose Journal Entry (in the Other column).
Edit the Journal date to a day before your last lodgement date. For example, if your last BAS lodgement was for the period ending 31 March 2022, you'd make the journal date 30 March 2022.
Select Inclusive of GST.
In the first line, select the Account you would normally allocate expenses to, such as Office expenses.
Next, enter in the total amount you calculated into the Credits column.
In the Description column, enter BAS adjustment.
In the GST column, select GST (10% Purchases).
Next, in the second line, select the same Account you selected in step 4.
Then enter the same amount into the Credits column and enter BAS adjustment into the Description column.
Select Out of Scope (Purchases) in the GST column.

11. Select Save and Close.

12. Select Yes to confirm the creation of the Adjustment.

Once complete, your GST exception will be accounted for and included in your next BAS.

If you have sales and purchase transactions

If you have both sales and expense transactions, follow both the instructions for the sales and purchase to create an adjustment journal.

Once complete, your GST exception will be accounted for and included in your next BAS.

Need help?

We’re here to help so if you have any questions or need assistance to create an adjustment journal, contact the Customer Support team.

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