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Level 2

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

Our GST return is filed annually.  Quickbooks created a bill for the amount owing when the return was filed.  It shows as a bill in the Accounts payable register.  Canada Revenue Agency transferred a refund owing to us for Corporate Tax to the amount owing for the GST.  How can I record this in Quickbooks in order to remove the bill from the accounts Payable register since it is no longer owing?  Your help would be greatly appreciated!!

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Best answer June 10, 2019

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Level 6

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

I would Receive the Refund for the CT and deposit it to a Contra account. That will clear the Receivable.

 

Then, I would Pay the GST from the Contra account. That clears the payable.

View solution in original post

5 Comments 5
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QuickBooks Team

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

Hi again Milo123,

 

It's awesome that your Corporate Tax refund is covering the amount owed for your Sales Tax return. QuickBooks Desktop's sales tax adjustment feature may be just what you're looking for. The following article goes over the steps you need to take and the instances in which you'd use this process.

The steps should get you on your way, but if you have questions or would like a hand with completing them, don't be afraid to give us a call. Our agents are happy to walk you through these processes and can even use a screen share session to see for certain that you're on the right track. Get in touch at 1-877-772-9158. If you're using Pro or Premier, agents are available when you are since the lines are open 24/7. Enterprise support is reachable from Monday to Friday between 9 a.m. and 8 p.m. EST. Learn more about support policies: Intuit QuickBooks Desktop Support Policies

 

Have a great day!

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Level 2

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

I followed the steps to Process the sales tax adjustment but it does not remove the bill for the amount owing in the Accounts payable register that quickbooks created when filing the tax return.  How do I remove it?  

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QuickBooks Team

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

Thanks for giving the steps a shot. Following the ones outlined in the "To adjust your sales tax due" section of the article should reduce the amount in your GST payable account. Since it hasn't, seeing what you're seeing would be beneficial. Because of that, I encourage you to call our support team. That way, we can make sure you get this taken care of.

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Level 7

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

Hi @Milo123 ,

 

QB always creates a bill for the amount owing when the return is filed.  It will only show now as a bill in the Accounts Payable if you did not use Accounts Payable to pay the original amount owing.  How did you pay the bill?  Did you use the 'Pay Bills' feature or did you just write a cheque from your Bank account and post directly to the GST Payable account?  If you've written a cheque from the bank account directly, you can go back to that transaction, open it, change the account to your 'Accounts Payable' account, tab across to the name, and choose your GST tax vendor (Receiver General, or CRA, or whatever you have called it).  This has now created a credit in your AP for that vendor.  Then go to Pay Bills and apply the credit to the outstanding bill amount.  If I've misunderstood your situation, please let me know.

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Level 6

Balance Owing for GST at year end - Canada Revenue Transferred Balance from a CT Refund

I would Receive the Refund for the CT and deposit it to a Contra account. That will clear the Receivable.

 

Then, I would Pay the GST from the Contra account. That clears the payable.

View solution in original post