Hello mike234,
Thanks for providing an example to explain what's going on in your account. Using the correct sales tax settings ensures your transactions are recorded accurately in the system. I'll be happy to assist you with this.
QuickBooks Online has three sales tax settings to help you properly apply your sales tax codes on your transactions. These settings are Inclusive of Tax, Exclusive of Tax, and Out of scope of Tax. To access or change these, you simply need to go to the ▼ drop-down menu beside Amount are (above the Sales tax column) when creating your transaction. The best practice is to select the necessary option before entering your amounts and sales tax code.
From the example in your post, it looks like your total isn't matching the tax settings you've mentioned. With inclusive of tax on a subtotal of $24, the total should remain $24 and the GST @ 5% will be on 22.86. Using exclusive of tax on a subtotal of $24 would imply GST @ 5% on 24.00 hence a total of $25.20. I encourage you to double-check your transaction to make sure you have the correct settings for the total amount you want to record.
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Have a great day!
