Can a do GST adjustments in Accounts Receivables?

Hi there, Sudha. You can certainly adjust GST in QuickBooks Online (QBO) in the GST Centre. If you apply a tax code to one line in a Journal entry, QuickBooks automatically applies tax rules to the entire transaction to ensure the debits and credits balance with the GST. This is likely why you are seeing the GST amount repeat across all lines.

If you need to adjust a specific customer's balance while also correcting the GST, it’s best to use an Adjustment Note (Credit Note) instead of a Journal entry.

To reduce the amount a customer owes you:

1. Select + New and choose Adjustment note.

2. Pick the customer and the GST code used on the original invoice.

3. Enter the amount you want to adjust. This will reduce the Accounts Receivable balance for that customer and update your GST Centre.

If you only want to change the total GST amount on your BAS without affecting an individual customer's balance:

1. Go to the GST tab and select Prepare return for the required period.

2. Click Adjust next to the GST line item you need to change.

3. Choose the Adjustment Date, Adjustment Account (like an Expense or Income account), and the Adjustment Amount.

4. Enter details in the Notes section and click Save.

After you complete these steps, this changes your GST liability for the BAS, but your customer balance (AR) remains the same.

We recommend working with your accountant or bookkeeper to make sure these adjustments meet ATO requirements for your business.

Feel free to return whenever you need further assistance.