Hello there Dindyal.boysie!
The QuickBooks sales tax center in your account has a feature to record your GST refund. I'll go over the steps below, but message me here if you need any help as you go through those steps.
Have a wonderful week and know that I'm always just a post away :)
Hi there cbaker152,
I've got your back. As you've noticed, QuickBooks Online and QuickBooks Desktop work differently, so using Online instructions in your Desktop program just won't work. Here's how to record a sales tax refund in QuickBooks Desktop. There are a couple of options, I'll outline them both.
When you created the sales tax return to file, the program would have opened the Refund window if the calculation showed that you were owed money. From there, you have the option to Receive Now or Receive Later. The refund now option would have taken care of it right away.
If you clicked the receive later option, all you have to do is click Receive Payments from the Home window. This can also be accessed from the Customers menu in the top toolbar. Once in that window, simply choose the appropriate sales tax agency, enter the amount, and choose where you want the funds deposited.
To see all the detailed instructions for this process, go to Help in the top toolbar and choose QuickBooks Desktop Help. You can also us F1 as a shortcut. On the Help tab, click search and type sometime like "sales tax refund" to find what you need.
Let me know if you have more questions!
Thanks for confirming. I'll be happy to share the correct steps below. To start, open your sales tax center by clicking on the Taxes tab.
Let me know how you make out. I'll be on stanby. :)
Ya, sorry I don't see the refund option. If I click on "Record Payment" it populates and window that allows for period, bank account, amount, etc. But does not allow a negative payment, now do I see the "Refund" option you spoke of.
Actually it shows "Sales tax payments" and sales tax owed and sales tax payment history sections....I don't see the "Sales Tax Returns", which obviously is the missing link???
I want to make sure you're able to create a GST refund cheque. At this point, I recommend contacting our phone support team for further assistance. One of our agents will be able to share your screen and help figure out why you're unable to find the Refund option. The number to dial is 855-253-1536 and the hours of operation are Mon - Fri 9 AM - 8 PM EST and SAT 9 AM - 6 PM EST. Feel free to ask questions.
That makes sense! The US version of QuickBooks is a bit different from the Canadian version. Don't worry, I'll steer you in the right direction. To get to the US Community Support Team, click on this link and type out any questions you have. Otherwise, I'll send this thread over to the US queue and a knowledgeable agent will be happy to share the right steps to take. Reach out if you need anything.
Hello there, @PT-phx.
I'd be glad to help share information and ways so you'll be able to record the sales tax refund in QuickBooks Online (QBO) US accordingly.
You can enter the refund as a deposit and select the liability accounts used when paying your taxes. Here's how:
You can see attached screenshot for additional reference.
For more information about bank deposits, you can also check this article: Record and Manage Bank Deposits in QuickBooks Online.
Stay posted if you have any other QuickBooks questions, I'll always be here to help you. Have a good day ahead!
After we record the refund in QBO, does the actual bank deposit need to match with the refund transaction? Or does the bank deposit just get credited to another place in the Chart of Accounts? Thanks!
Hi there. If you're seeing a matching bank feed transaction and you've already recorded the refund in QBO, it's always a good idea to match them. Otherwise, you can exclude the transaction from the bank feed.
It might be beneficial for our tech support team to do a screen share with you to see exactly how things are appearing in your account. Please reach out to the team so we can have a closer look.
So It's for Quickbooks destop right? I dont see the refund function in Sales Tax of QBO. Trying to record the GST refund from CRA by transferring it back to GST/HST Payable but it won't let me do it.
It's great to see that you're taking advantage of the sales tax centre in QuickBooks Online. It's a powerful feature that uses advanced tracking behind the scenes of each transaction you enter to streamline the filing of your returns. I'll be happy to help you record this refund.
Once you've marked the return as filed, recording a refund or payment just takes a few easy steps:
Now you're all set to record this refund, which makes it easy to match your bank transaction.
Don't hesitate to reach out any time.
Are you asking about QB Desktop? If so, as soon as you 'file' your Sales Tax Return, if there is a refund amount owing to you, QB automatically creates a new 'customer' in your customer list and appends your GST Vendor name with '- Receivable'. For example, my tax vendor is named 'Receiver General - GST'. The customer name it created is 'Receiver General - GST - Receivable'.
When you get the refund, you receive payments like you receive any other customer's payment. If there is interest added to your refund, you will have to make an interest entry to that same customer using a JE; DR Receiver General - GST - Receivable and CR Interest Income. When you go to receive your refund which includes interest, both amounts will be showing in the transactions you can apply the payment to. Check them off, and it is done. Then go to Deposits and deposit to the bank.
Do you know why it was less than what you were expecting? Check your Notice of Assessment to find out why. You would have to make an adjusting entry to that GST Receivable customer to account for what you actually did receive. You could do it with an invoice, but I prefer not to use invoices for anything but what relates to sales, otherwise the adjustment transactions show up on your tax reports. I would suggest using a JE instead.
CR Accounts Receivable on first line, enter the GST Receivable customer name in the name field.
DR the appropriate account you want to use for the adjustment. (Interest Expense? Misc. Exp?)
Now go to Receive Payments. Enter the amount of the payment that you received from CRA. Apply it to the amount you filed. Note that there is an underpayment in the amount your payment was shorted by CRA. Click on Discounts and Credits in the top of window ribbon. The available credit will be the $5.91, from the JE that you made in the previous step. Apply that credit and click Done. Now you have a payment in the exact amount you received from CRA and can deposit it to the bank.
The only question here is which account to post the JE expense to. Maybe your payment was slightly late and they're charging a bit of interest or late penalty? If so, you would post to Interest Expense, or similar account. Whichever account you feel is most appropriate for the reason the payment was short.
Good luck :)