GST Report Line 101 showing incorrect total, how do I fix?

While Dividends are Income to you, they are an Expense to your business, as are bank charges. Interest earned by your business bank account are the only Income for your business - although I fail to see how Interest could be earned since there are no Sales, hence no Income to deposit.

You can capture sales and taxes collected via journal entry by entering the taxes on the sales line of the journal entry rather than a line on it's own

I'm in the same situation.  Other income (dividends, interest income) recorded by JE is being captured in Line 101 on my return. I see your comment is over a year old - any solution other than file manually? S

I'm in the same situation.  Other income (dividends, interest income) recorded by JE is being captured in Line 101 on my return. I see your comment is over a year old - any solution other than file manually? S

Hi Susan:

Look at the tax indicator; if it includes the word Sales it will show up here e.g. Exempt (Sales), Zero-Rates (Sales), Taxable (Sales).

If you change these indicators to Exempt (Purchase) it will not appear in your sales total.

HI Susan, 

I saw your message and am in the same situation. I was wondering if you ever found a way to fix this issue or if you just had to manually file the return? 

Hi there KMon20,

I'm glad you've turned to the Community for support with using QuickBooks, but in this case, consulting with your accountant or a QuickBooks ProAdvisor is the best course of action. Since you've recorded income using a Journal Entry, it's important that the correct accounts and tax codes are applied to each line to ensure that your tax filing is impacted correctly. This is something an accounting professional can give you guidance on, so let me show you how you can connect with them directly within QBO.

If you're working with an accountant already. you can navigate to the My Accountant tab and invite your accountant using their email address. Once they accept the invitation they'll be able to work with you in QuickBooks in order to ensure your income is recorded accurately. If you don't have an accountant just yet, the Find a pro to help button on the same page will take you to our database of QuickBooks-certified accountants, known as ProAdvisors who are more than happy to support you on issues like this using QuickBooks.

Don't hesitate to reach out if you have more technical questions related to using QuickBooks Online. I'm happy to assist in whatever way I can.

For clarity, dividends paid out are NOT an expense like bank charges.

They are a negative cash flow yes, but not an expense.

Dividends are the distribution of after tax retained earnings.

100% agreed Joe, however, in terms of tax treatment QBO treats items as tax-sales or tax-purchases.  In order to prevent something from showing up in your tax (GST/HST) returns you have to make sure it's not selected as sales, which only leaves purchases.

If that's so, how would one keep cash and receivables and long term debt from the HST return? I am by no means an expert in QBO but there must be a better way than calling dividends expenses.

Not everything can be recorded in “Sales”! I often have to do General Journal entries due to Asset Sales &/or  Purchases! They need the GL entries to be linked to the HST file. It was always linked in DeskTop version so I don’t know why it can’t be the same for online version. So frustrating 

Hello @Smilynic ,

If you are wanting tax entries that are entered on a JE to show up on tax reports, then you cannot just apply a code to a sales or purchase line in a JE.  You have to enter the tax account on a separate line and then tab over to the Sales Tax column and enter the correct tax code.  This applies to either sales or purchases.  See below for example of a purchase:

This behaves exactly as it did in Desktop.  If you tried to put a tax code on Line 1, it would not populate in sales tax reports or on the return.  Designating the tax account to a separate line on the JE will, as long as the Sales Tax field is mapped to the proper line on the return.

Hope it helps.

All the best,

Rochelley

I'm having this same problem.  In my case I am entering the sales figures from Shopify as a monthly journal entry.  I have a retail store.  I have many transactions in a month.  I don't understand how you overcome the recording problem with invoicing.

I have an app that puts tips from Clover into invoices in QBO (see pix 1).  The tips seem to be getting posted to a liability account called "Clover Tips" and where Sales Tax is indicated as "Exempt".  I find these amounts are ending up on Line 101 of the Sales Tax return that QBO generates (see pix 2).  I thought  "Exempt" meant the sales amounts would not be part of Line 101, yet if I compare what QBO says to put on Line 101 to what shows in the Profit and Loss report for the quarter, I can see that tips are being included for Line 101.  There is an exact match in the difference between what is recommended for Line 101 and what shows on the Profit and Loss report.  Tips are in the liability account and don't show on the Profit and Loss report, as it should be.  Some way to re-configure so that the tips are not included in Line 101 on the Sales Tax return, without manually working out the amount to file and filing manually all the time?