Upgrading to latest QuickBooks edition and I track sales tax and my company is NOT in Quebec
If your company is in Québec, use this article instead.
The procedures below categorize your uncategorized tax amounts as a single "lump sum". Click the link below to view the Upgrader's Guide.
After you upgrade your company file, you may have amounts of uncategorized sales tax. These amounts were not assigned to a line on a sales tax return, so QuickBooks doesn't know how to report it when you file your sales tax.
While you can file your sales tax with uncategorized amounts, we recommend you categorize them before filing. The procedures below describe how to do this.
After you categorize your sales tax amounts, you should also do the following tasks:
If you have memorized transactions that involve sales tax, you must update those transactions to use the new sales tax functionality.
Sales tax items in a newly-upgraded company file use default names like "GST (1) on Purchases". You may want to give these items more user-friendly names.
For more information on the Uncategorized Sales Tax amounts, click here .
In your older version of QuickBooks, create accrual-basis trial balance reports as of:
the date you upgrade your company file, and
the end date of your last GST/HST/QST period. Find this date at the top of the last personalized return that you sent to the CRA.
Print these reports and write "pre-upgrade" on them.
In your upgraded company file, create the same trial balance reports as you did in your older version. Make sure that the pre- and post-upgrade sales tax account balances match.
Print these reports and write "Post-upgrade" on them.
To adjust your GST liability for uncategorized amounts in your upgraded company file:
Go to the Sales Tax menu and click File Sales
For the Tax Agency. select the federal tax agency (Receiver General).
For the From date, enter the first day of your last unfiled sales tax period. For the To date, enter the date that you upgraded the company file to QuickBooks 2008.
Click the line with Uncategorized Tax Amounts. If Uncategorized Tax Amounts is any amount other than 0.00, you will need to make a federal sales tax adjustment:
Click the Adjust Sales Tax Return button. The Sales Tax Adjustment window appears for the Receiver General tax agency.
For the Adjustment Date. enter the day after the last filed sales tax period. (If you have never filed sales tax, enter the date that you upgraded the company file to QuickBooks 2008.)
Click the Adjustment Account drop-down list and choose GST Payable.
Enter the following, depending on whether you have a positive or negative amount of uncategorized tax.
If you have a POSITIVE amount (e.g. 21.10)
Click the Sales Tax Item drop-down list and select the sales tax item for line 103 (e.g. GST on Sales or HST on Sales).
Note: After you migrate your company file, this item will have a name like "GST (3) on Sales". Make sure that the item you select has a Price that is greater than 0.0%.
In the Amount section, enter the unclassified amount (e.g. 21.10).
If you have a NEGATIVE amount (e.g. –43.20)
Click the Sales Tax Item drop-down list and select the purchases sales tax item for line 106 (e.g. GST on Purchases or HST on Purchases).
Note: After you migrate your company file, this item will have a name like "GST (3) on Purchases ". Make sure that the item you select has a Price that is greater than 0.0%.
In the Amount section, enter the uncategorized amount without the negative sign (e.g. 43.20).