A bill was never entered for the full amount which includes GST.
Partial payment was made for this bill - not taking GST into account.
Another partial payment is upcoming to pay bill off - not taking GST into account.
How do I create a transaction to reflect all this?
Hi again Nancy!
It's great to see your name again here in the community and I hope things are going well since your last question to us.
Making sure that GST is factored into your bills is essential for you overall calculations and I'll do what I can to help resolve this. It's possible to edit the original bill, even with the partial payment already made and then you'll simply have to adjust the final payment amount accordingly so that you're paying off the entire balance of the bill.
In QuickBooks Desktop, there are a few ways to find the bill that you'll need to edit, but the fastest way to find it is to go through the Vendor Centre. You can bring that up by clicking Vendors on the Home window or by going to Vendors in the top menu bar and choosing Vendor Centre. Click on the name of the vendor to see the list of Transactions. Double click to open the one you need.
Add the sales tax code in the Tax column on your bill and then hit Save & Close. The program will display a message saying "This transaction is linked to others. Are you sure you want to change it?" Click Yes to update the transaction to the amount with tax.
If the amount is already inclusive of tax and you simply need the tax code added for calculations, there's an option at the top of the transaction to check off for Amts Inc Tax. You can toggle option this setting by following these steps: Edit > Preferences > Sales Tax > Company Preferences tab > check off Allow tax inclusive (gross) prices and costs to be entered.
If you've set up your final payment for this bill as a memorized transaction that you need to edit, you can do so by going to the Lists menu and choosing Memorized Transaction List — hitting CTRL + T is a shortcut to bring up this list as well.
I hope that helps. If you're looking for something a bit different than that, feel free to give our phone support agents a call at 1-877-772-9158. Pro and Premier agents can help 24/7 and Enterprise agents have your back from Monday to Friday between 9 a.m. and 8 p.m. EST. Learn more about support here: Intuit QuickBooks Desktop Support Policies
Have a great evening.
Thanks Laura for your suggestions. And yes, the business owner received his paper bill, and then only created a bill for the partial payment made a few months ago. I could see this amount was going toward this paper bill because of the Invoice #. Now he's paid it a second time to complete the payment owing - but it wasn't yet entered in as a bill.
So I could perhaps create two bills to complete the final payment. What if I entered the second payment as a bill and then another bill just for the GST?
Thanks for the additional details, Nancy. I want to make sure I'm following correctly. From what you're saying, it sounds to me like the business owner received the paper bill, but then instead of entering the entire bill and making a partial payment, he only entered the bill for the payment amount he was making at that time. Is that correct?
If so, that complicates the situation a little bit. I recommend deleting the entries that have already been made and then recreating the bill for the full amount, making sure the GST rate is included, and re-recording the partial payment. To make the final payment, you'd simply go to the Pay Bills feature and then enter the remaining amount for that bill.
In the event that anything has already been reconciled, it may be a matter of unreconciling to that point to make sure the numbers line up or you can try manually rereconciling the transaction in the account register. When you go to the Chart of Accounts and open that account register, you'll notice a column of check marks. If there's a check mark, that means the transaction has been reconciled. To change the reconciliation state of a transaction, click that column on the transaction line. Learn more about reconciliation here: Reconcile bank and credit card accounts in QuickBooks Desktop
While I see what you're getting at with your suggestion, entering a bill to a sales tax liability account causes issues with your accounting overall. When you try to choose a sales tax liability account on a bill, the program gives you a warning about how this creates inaccuracies for sales tax reports and remittances. For that reason, I recommend deleting and recreating the bill. That way, you can be sure everything is correct.
Let me know if that makes sense or if you have more questions.
Here's what I would do:
Edit the partial bill that was entered to the full amount of the purchase including the tax. The original payment will still be applied, but now there will be a balance owing. Use the Pay Bills function to pay the balance owing.
You're right, impossible. I definitely over-complicated it, despite having recommended editing the bill in my original response. Thanks for catching that!
Hello everyone who replied!
Thanks for all your suggestions. We adjusted the partial bill that was paid to reflect the whole amount and took off the two instalment payments made. It all worked out wonderfully.
Appreciate all your support.