We can perform some troubleshooting steps to resolve the issue you are experiencing in QuickBooks Online (QBO), busrabuzlu.
When entering a bill and encountering the error about selecting a tax liability account or not specifying a tax rate, it means there's a misalignment in how the GST/HST is being recorded for that transaction. To resolve this, ensure that the GST/HST Payable account is appropriate for the transaction you are entering. This account is used to track the taxes you are collecting from customers, not the taxes you are paying on expenses. For expenses or bills, you usually specify the GST/HST expense account instead.
Once done, properly assign the applicable tax rate to the transaction. When entering a bill and applying a tax liability account (such as GST/HST Payable), it is necessary also to specify the tax rate that applies to the transaction. This allows QBO to calculate and record the tax amount correctly. Here’s how to do it:
- Open the bill entry form.
- Enter the vendor details and date.
- In the line items section, select the appropriate expense account for the purchase.
- Enter the amount.
- In the tax column, select the correct GST/HST tax rate from the dropdown menu.
To learn more about creating bills and recording the payments, you can check out this article: Enter and manage bills and bill payments in QuickBooks Online.
Then, verify that your chart of accounts is correctly set up, particularly with your liability accounts for GST/HST. The GST/HST Payable account should typically be credited when you're collecting GST/HST from customers, not when paying GST/HST on purchases. This gets updated automatically when you select the correct tax rate on transactions. For more details about the chart of accounts and why it’s important to set up correctly, refer to this article: Learn about the chart of accounts in QuickBooks Online.
Moreover, refer to these articles about managing your sales taxes in QuickBooks:
Don't hesitate to reply to me or drop by the Community again if you need more help with your taxes and tracking your bills or any QuickBooks-related concerns. The Community is always ready to offer guidance and support, busrabuzlu.
