Increasing / Adjusting the Tax Amount in the tax column in QuickBooks QBi 2008/09

Legacy KB ID: 309

Question

How do I Increase / Adjust the Tax Amount in the tax column in QuickBooks QBi 2008/09?

Answer

*Note: If your Tax reporting is Cash basis, bills will need to be entered in at the time of payment.

In this scenario, the Bill is for $378.90 including GST.

The net amount originally entered is $344.44 and the tax is $34.46 as shown on the bill received from the supplier.

When you enter the transaction in QuickBooks, the net amount displays $344.44 but the tax amount displays $34.44 Fig.1


Fig.1



Create a Tax item for 100% tax amount for purchases and link it to the tax code. Fig.2

• From the List menu, select Tax Item List

• Click on Item and select New

• Choose Tax Item in the Type drop down list

• Enter a name for the Tax Item

• Enter a description if required

• Enter 100% in the Tax Rate (%) or Amt and select Australian Taxation Office in the Tax Agency

• Select Use this item in purchase transactions

• Select Goods and Services Tax in the Tax Return Line drop down

• Click OK

• From the List menu, select Tax Code List

• Click on Item and select New

• Enter a Tax Code

• From the Taxable Information, select the Tax Item you just created in the Purchase Tax Item drop down list

• Click OK

• From the List menu, select Tax Item List

• Click on Item and select New

• Choose Tax Item in the Type drop down list

• Enter a name for the Tax Item

• Enter a description if required

• Enter 0% in the Tax Rate (%) or Amt and select Australian Taxation Office in the Tax Agency

• Select Use this item in purchase transactions

• Select Goods and Services Tax in the Tax Return Line drop down

• Click OK


• From the List menu, select Tax Code List

• Click on Item and select New

• Enter a Tax Code

• From the Taxable Information, select the Tax Item you just created in the Purchase Tax Item drop down list

• Click OK

Supplies and Acquisitions – G11 = $378 Fig.9


Debits and Credits – 1B = $34 Fig.10

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