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sc38
Level 1

GST Clearing

Hi Team, 

I have a GST Control and GST Suspense account under Balance Sheet current liabilities. 

 

Noted that GST for receivables and payables was set to flow automatically into GST control account:

Trade Payable - Cr Supplier Debit GST Control 

Trade Receivable -  Debit Customer Cr GST Control 

 

GST suspense is used as receivable or payable from/ to GST (Actual Receipt/ Payout):

Payment to GST - Cr Bank Debit GST Suspense 

Claimed from GST - Debit Bank Cr GST Suspense 

 

Q: Will you suggest i do a manual journal entry posting to clear all the previous balance or is there other way or better suggestion for clearing GST control & GST suspense account. 

 

Thanks. 

4 Comments 4
MaryJoyD
QuickBooks Team

GST Clearing

I can help you cleat those previous balances, @sc38.

 

Creating journal entries can help in clearing those accounts when running your reports like the Balance Sheet. What I can suggest is you to record a tax payment to clear those previous balances.

 

Here's how to manually record your tax payment to zero out your GST payable:

  1. Go to Taxes and proceed to the Returns tab, under Filed returns, find the return and select Record payment
  2. Add the Bank accountPayment date, and Payment amount on the Record Credit Card page.
  3. Select Save.
  4. Your return is now marked as Filed and paid.

You can see your payment details under the Payments tab.

 

Here's the file your GST return and record tax payment in QuickBooks Online article for detailed guidance. 

 

You can also refer to the following article on how to record, adjust and delete GST payments in the GST Centre: Manage GST payments in QuickBooks Online.

 

Let me know if you need further guidance in clearing out your balance. I'm always here to help you out. Take care and have a great rest of the day!

sc38
Level 1

GST Clearing

Hi Mary, 

 

What if the amount that we have received/ paid has different with quickbook previous balance. 

 

Thanks.

 

Best Regards,

SC

sc38
Level 1

GST Clearing

Hi Mary,

 

Further to above queries, if i use  Record payment function, will it become a double deduction from my bank ? as it has recorded as credit bank debit GST suspense earlier.

 

Thanks.

AileneA
QuickBooks Team

GST Clearing

Hello, sc38. 

 

Thank you for getting back to us. Since you already record your transaction and to prevent any duplicate. I suggest creating Journal Entry. To create a journal entry you can follow the detailed steps on this article: Create a journal entry in QuickBooks Online.   

  

I recommend reaching out to your accountant to ensure that your balance sheet will be balanced at the same time to clear the liabilities. If you don't already have an accountant you're working with, you can find one in your area here: Find a ProAdvisor. The accountant will be the best equipped to explain how transactions hitting each account affect your accounting. 

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success. Stay safe!