How do I record a PST Refund? I have a cheque from the govt , i cant post it against a liability account and when i enter it through the tax module it doesnt post

I completely understand how frustrating it is when the sales tax module isn't behaving the way it should, especially when you're trying to properly record a government cheque.

You are spot on about the liability account—QuickBooks Online Canada hard-locks its system-generated Sales Tax Liability accounts (like PST Payable). It strictly prevents direct manual journal entries or bank deposits from hitting that account so the background tax calculations don't get thrown out of balance.

If you filed the PST return in QBO and it showed a negative balance (a refund), and this cheque is the government paying you that exact amount, you can record it directly from the Returns tab. Here's how:

1. Go to All apps on the left navigation menu and select Sales Tax.
2. Click on the Returns tab and find the exact filed PST return that generated this refund.
3. On the right side, click the dropdown arrow and select Record refund.
4. In the pop-up window, ensure the Bank Account selected is the actual checking account where you are depositing the physical check. (If this defaults to 'Undeposited Funds' or the wrong account, it will not show up in your banking feed.)
5. Click Record refund.

Once done, you can now go to your Banking feed and match the downloaded deposit to this recorded refund. If you meant something else, please let us know so that we can fully address your concern.

If you have any additional questions, please feel free to reach out. We are always here to help.