The HST return report does not match at all what was filed to CRA. It appears someone did not use the tax item code correctly and it's a bit of a mess. There is an amount sitting in "sales tax amounts not reported or paid" and "unassigend Sales Tax Amount". In fact I would say the GST/HST Return Report in QBD never filed. How do you fix this problem so that there is a zero (0) balance for the new fiscal year.
This can be painful to unscramble. First you have to get to the bottom of the problem in case its the overall sales tax setup that isnt right. If its just tax codes on items then thats not so bad ...
You then need to deal with the last comment: I would say the GST/HST Return Report in QBD never filed. - Goto your CRA account and check what has (not) been filed. If you now accidentally miss or duplicate a filing it will make the mess even worse. Further - for the filings that have been sent to CRA - you need to determine if there have been 'filed in QB' or not.
Once you know the system is working, whats been filed to CRA, and whats been filed in QB, then the next step is to adjust the QB records to match what has been sent to CRA. That will probably involve a couple of 'sales tax adjustments' - cant detail this now.
Note that the intent is not to 'zero-out' anything, its to make it right - and zero due/refundable is probably not it.
Thank you for replying. HST was filed with CRA but not in QBD. HST is filed annually. Upon further review it looks like each entry did not have a tax code assigned, the tax code was left blank. In other words the gross amount is entered leaving the tax code blank. A journal entry was created at year end for each account category cr: the account db: hst payable. And there was no link to the tax item which would link it to the correct HST ltax account line (ie line 106 ITC) in the return report. It appears this goes back years. It was never filed in QBD. You mentioned do a "sales tax adjustments" I'll have to look into this further. What a mess.
So essentially what happened is that no sales tax tracking has been done in QB - other than the YE entries. That's actually not so bad for you - there no need to change anything in those prior years (if the ye je was right) If you want to start using the QB system as of Jan 01 then you will just need to recode the last 3 months. BUT first - since the QB system has never been used - it probably hasn't been setup (or updated). Id suggest you go thru setup process first before trying to use any of the tax codes