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 account, Payment 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!

Hi Mary, 

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

Thanks.

Best Regards,

SC

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.

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!

I have the same question.

Due to exchange rate difference, i had to pay less than what was due on books. When i recorded the payment made on such liability, my books still show a GST suspense liability of, say, $24/-. How do i clear that off from my balance sheet such that it should clear the balance as well GST return balance?

I can help you with clearing the balance showing from your reports, @anjum.

You can create an adjustment to decrease the amount of GST payment to match what you've paid. To do it, you'll just have to set up an account for GST adjustment from your Chart of accounts. Then, create the adjustment from the Taxes menu. 

Here's how to create an account that you can use when creating an adjustment:

1. Go to the Gear icon and choose Chart of accounts.
2. Click on New at the top right.
3. From the Account Type dropdown, select Income.
4. Use Sales of Product Income for an income account for the account’s Detail Type.
5. Set the account's name.
6. Click on Save and Close once done.

Once done, go to the Taxes page to create the adjustment:

1. Go to the Taxes menu.
2. Locate the tax period and click on Tax Adjustment.
3. Set the Account for adjusting tax.
4. Enter the Debits or Credits amount.
5. Provide all the necessary information.
6. Click on Save and close.

For detailed guidance about adding a GST payment, refer to this article: Create or delete a GST adjustment. This will show you how to set up an account and add an adjustment.

You can run a GST sales summary report to see your lists of all your GST payments. It includes GST agency, the taxable amount of sales, and payments: Manage GST payments in QuickBooks Online.

That's it! If need further guidance creating this adjustment or anything else, let me know in the Reply section below. Have a wonderful day!