Hello @akhet83
Open Transactions represent changes to a previously filed period, to ensure every transaction is only filed once.
If a transaction had it's date or amount edited, for example, after it had already been filed, this will create an Exception or Open transaction report.
If you started with one accounting method (Accrual) and switched to another (Cash) (or vice versa) after filing tax, this could create problems in your sales taxes because each method can potentially account for tax in different periods. If this is what happened, then the only transactions that wouldn't show as open, would be transactions where you just happened to issue an invoice and collect payment for it in the same period.
It is possible to have your accounting method set as one type, and your sales tax set on another. First of all, you will need to get both set to the same method.
To find what method you are using for Sales Taxes:
- Select Taxes from the left menu.
- Select Sales Tax at the top.
- Click on Manage Sales.
- On that page, click the drop-down arrow beside Add Rate.
- Select Edit Agency Settings.
- Choose Accrual under Reporting method then click Save.
To find out what method you are using for Accounting:
- Select Gear Icon at top right.
- Go to Settings.
- Select Company Settings.
- Go to Accounting method.
- To change, select edit pencil, edit method and save.
Now that you have both methods set the same, your sales tax filings will file everything in the same period going forward. Any discrepancies from before the change will be identified as Open Transactions. This is simply for your information. QBO will take care of ensuring all taxes are filed accurately and will not duplicate any taxes already filed.
