Convert Cash Sale to Invoice?

Invoice for just the GST portion. GST processing is different in earlier versions, and there are other differences, so you should always identify your version and "edition" when asking questions about QB; I'll assume you're using a relatively recent version.

If you sold quantity 2 of Item A, invoice the customer for quantity 2 taxable and negative quantity 2 non-taxable, overwriting or adding to the description of the non-taxable line something like "paid previously". The result will be an invoice for only the amount of GST. You might also want to add a message or another line of description, something like "Invoicing for GST only".

Depending on the volume of transactions, you're still in for quite a bit of work - but at least this doesn't require deleting previous transactions.

When you say you "just learned" - I hope this came from a reliable source. Unless someone really screwed up, it's unusual to be required to retroactively collect GST over such a long period. Depending on your relations with your customers, you should probably also expect that some will refuse to pay.

If you haven't already done so, I recommend discussing with your accountant before you proceed.

(corrected)

"!-!" wrote:

Thanks for your reply, "!.!". I use QB Pro, version 5--ancient, but adequate for my small computer repair and maintenance business. I went through all the Invoice and Cash Sale transactions and corrected them to include GST, and entered Payment items to reflect the amount paid. That leaves an unpaid balance of just the GST amount on Invoices. For Cash transactions, I just ate the GST for non-business accounts by adjusting the amount charged. For business accounts, today I created Invoices manually by copying data from the Cash Sale transaction, then deleted the Cash Sale transaction. With Invoice and Cash Sale windows side-by-side, it wasn't as bad as I feared.

I'll phone my business customers and ask if they will accept the corrected Invoices, and I'll suggest they include payment when they pay their next invoice. If they refuse, I'll just eat the GST.

I exceeded the $30,000 revenue limit in December and wasn't paying enough attention to the possibility. It was Canada Revenue Agency that told me that GST would be payable commencing February 1st, based on the December revenues exceeding the limit. I do my own accounting, so there's no one but me to blame for only discovering it in April. To add to my burden, I just noticed that my QB reports have all been on a Cash Accounting basis. I believe that's the way the accountant set me up, but it's not allowed for my type of business, Canada Revenue Agency says. I'll probably have to recompute all my business income and personal taxes for several years. Somebody please shoot me!

Larry

OK, just stand against the wall. Blindfold, last cigarette? I misinterpreted your original "December-February", thought you meant you were going back to Feb ***2004*** to collect. It does sound as though you've got the facts now. Most of your business customers will probably cooperate, as the GST is not an out-of-pocket expenditure for them. I am surprised that your accountant would have set you up on a cash basis - while it's apparently not so unusual in the U.S., it is VERY rare in Canada.

Cheers!

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