Balancing out my HST Account

Hi Experts,

I need some help in balancing out my HST Account. In particular, for one period, I spent more than I made, and CRA posted a CR of $5.05 to my account, towards my HST Balance

The issue is when I filed this particular return within QB, it posted the $5.05 to my Receiver General - A/R, opposed to reducing my A/P, in order to balance out with CRA. For this transaction, I located the following Journal Entry under Receiver General (vendor), not A/R.

Journal Entry
When I try changing the second line to A/P with the Receiver General (Vendor) as Name, I get

QB Warning
Based on this error, I also assume that I cannot DR A/R and CR A/P.

How can I fix this, and bring the $5.05 into my A/P? I'm using QB 2012

Thank you.
APD TorontoSoftware DeveloperAsked:
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JohnBusiness Consultant (Owner)Commented:
CRA has your $5 credit and not refunding it to you - correct?

Easiest way:   Receive the payment from CRA to clear Accounts Receivable.  That will credit your QuickBooks bank and not your real bank. This is easy and AR is clear.

Now write a Journal Entry for $5 to correct the bank. Put the offset in a miscellaneous account. Remember which Account.

File your Sales Tax next quarter. You need to adjust $5 out of it for the credit CRA is giving you. Adjust it in the same amount and to the miscellaneous account above. The miscellaneous account will zero out and you write a cheque for your HST that is $5 less (after your adjustment to HST) and CRA will be happy.

Watch carefully and the above works. I do this myself and for clients.

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APD TorontoSoftware DeveloperAuthor Commented:
Thanks John. Creative!
JohnBusiness Consultant (Owner)Commented:
You are very welcome. I always look for easier ways than all the tax implications of an HST Journal Entry (which can be mucky)
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