Daily Sales and posting GST to GST/HST Payable Account

Hi OldeEnglishBooks,

Recording your daily sales to ensure your accurately tracking the taxes is essential.  I appreciate you reaching out for assistance with having the GST/HST post to your 'other current liabilities' account in the chart of accounts.  In QuickBooks Online you can do this with a single sales receipt.  I'd be happy to assist!

Based on the information you've provided, it seems that the issue lies within how the sales tax is set up.  You've indicated this to be set as inclusive for which the tax is included in the price.  However, setting it to exclusive would record the amount and the tax would be separated.  This would then apply the tax portion to the required account.

It's always a good idea to reach out to your accountant for their expertise and advise for the best course of action.  If you don't have an accountant we can help you locate a ProAdvisor near you.

For future reference, here's the article you need for recording daily sales in QuickBooks Online Canada.

Please don't hesitate to reach back out if you have any other questions.  We're always happy to help!

Hello Trish_T,

Thank you very much for your reply. I checked the article that you provided a link to and this is exactly how I set up my "Daily Sales". In the example on the link, their tax is also included in their total but they don't mention how it get posted to the GST/HST payable account?

From your suggestion I believe that you want me to enter my "Daily Sales" items with NO tax and create an additional line item for GST and enter it manually - is that correct?

Thank you very much.

Hi OldeEnglishBooks,

Thank you for reaching back out to Community.  I appreciate your additional information when entering your daily sales, and it's essential to have the GST/HST applied to the correct account.  In QuickBooks Online the sales tax will automatically be applied to the appropriate account when recording your transactions.  I'd be happy to help!

I recommend entering the sales tax as exclusive or inclusive for it to show in the payable account.  If you're still not seeing it, I suggest clearing cache on your browser and try again using private or incognito mode to see if you get the same result.  If the issue persists, please contact us so we can take a closer look from our end and get you back to business as soon as possible.

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Hi Trish_T

I have a related question to this:

When posting the daily sales I also have a "Tips payable" account (+).

When trying to post (save and send) the system gives me the following message:

The only item that I wish to tax (GST - Tax is setup) is the Sales Income as Tips payable is not to be taxed. How can I set it up so that the system allows me to post these without tax being applied to the Tips payable or any other item?

Thank you very much.

I appreciate you reaching out to us about assigning a non-taxable item on taxable daily sales, @JINDRA.

I'm here to guide you how to get pass this alert you're getting. You'll get alerted by the system if you marked the transaction taxable but did not assign any tax code to the line items on the sale.

To fix this, you have to assign a code to the Sales Tax column. For non-taxable items, use the options Exempt, Zero-Rated or Out of Scope, which are all at 0%.

Here is an example screenshot for reference:

I'm also adding some links about sales tax, and program tutorials:

• Set up and use sales tax in QuickBooks Online
• Video tutorials for QuickBooks Online
   

Come back here here anytime if you have other questions about taxes on sales. I'll be right here to help you with this topic and other program concerns too. Have a nice day!

Thank you very much for your kind response and help Jen_D.

"To fix this, you have to assign a code to the Sales Tax column. For non-taxable items, use the options Exempt, Zero-Rated or Out of Scope, which are all at 0%."

It appears that due to the location that we are in (Caribbean) we have to use Quickbooks Online International which does not have these options built in. However, I believe that I should be able to create these options myself by adding additional taxes.

Do you have any experience / guide on how to add additional taxes or tax categories. I believe I should be able to add an additional tax under the same tax agency, name it whatever I would like to name it e.g. Non-Taxable or Exempt or Out of Scope and set it at 0%. Then use these new taxes the same was as I would use the categories as described by you above?

Any input / help / thoughts you could provide would be greatly appreciated.

Thanks and yes regards.

Have a wonderful Day!

Hi JINDRA,

In addition to the valuable information provided here, QuickBooks Online provides the versatility you need when setting up and using the Sales tax feature.  In addition, you can add custom tax agencies and rates in QuickBooks Online by following this helpful guide. 

If you have any other questions, feel free to reach back out.  We'd love to help!