Knowledge Base

Whether you are making adjustment for 50% HST on meals at the end of the fiscal year or if you are clean up accounts and need to do a reallocation for the ITC amounts that haven't been applied to expenses....and your bank has already been reconciled (nice) there IS a way to enter a journal entry AND correctly affect the Sales Tax Module as well!  

Both expense entries in Journal Entry are going to be to the same expense account. Credit the expense account for the FULL amount of the adjustment WITH the HST included. Debit the expense account for the adjusted amount WITHOUT the HST and select HST ON (Purchases) under the Sales Tax column.