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Wendy LM
Level 1

Stop retainer being included in HST report

I've set up the retainer as an item and the amount goes to a current liability account and there is no HST. This all works. When I produced the HST report it was being included in line 101 sales. How do I stop this from reporting?

I've done the same in QuickBooks Online version, using the "Out of Scope" tax code fixed it there.

5 Comments 5
JamesM
QuickBooks Team

Stop retainer being included in HST report

Hi Wendy LM,

 

Congrats on your first Community post! I'll be happy to steer you in the right direction and figure out why the retainer's showing up on your HST report. 

 

First, I want to make sure we're on the same page. What tax code did you use for the retainer in Desktop? 

Wendy LM
Level 1

Stop retainer being included in HST report

The retainer is coded as "E" - exempt.

Mark_R
QuickBooks Team

Stop retainer being included in HST report

Thanks for getting back to us, @Wendy LM.

 

In QuickBooks Desktop (QBDT), you can manually change the tax code to "Non-Taxable Sales" when creating a transaction using the retainer item. This way, it'll not be included in your HST report. Let me guide you how.

 

  1. Go to the Customers menu.
  2. Select Create Invoice or Enter Sales Receipt.
  3. Choose the customer.
  4. Enter the necessary information.
  5. In the Tax column, change the tax code to Non-Taxable Sales.
  6. Click Save & Close.1.PNG

After which, the retainer item will stop being included in your HST report. 

 

If you want to exclude the previous retainer item that included in the report, you can find and edit the tax code of each transaction.

 

Here's an article you can read for more information: How to Set up Sales Tax in QuickBooks Desktop.

 

You might also want to check out these articles for your future reference:

 

Please let us know if you have any other concerns. We're always here to help.

Wendy LM
Level 1

Stop retainer being included in HST report

 

Hi Mark,

I'm at the clients office today with the HST sales issue and the tax code being used is E - Exempt. I've gone through as many set up screens as I can find but don't see how to exclude an amount from HST Sales. Setting up a new code only gives the option as Taxable or Non-Taxable. There is no Non-Taxable Sales Code.

QB New Sales Tax Code.JPG

JamesM
QuickBooks Team

Stop retainer being included in HST report

I notice you've spent a lot of your time on this. I want to make sure this issue is addressed ASAP. I recommend calling our phone support experts at 1-877-772-9158. One of our experts will be happy to share your screen and make sure everything is up to par. The hours of operation are 24/7 so you can call at your earliest convenience. Let me know if you have questions. 

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