Hi there mczemp,

You'll have to edit the expense transactions you've coded with GST on purchases to reduce the amount shown in line 1B. Or create a journal entry to reduce the amount. However, I recommend consulting your accountant to learn what balancing accounts to use in the journal.

To check your expense transactions, you can run the Transactions by Tax code report. Here's how:

1. Click on the GST tab.
2. Click on Run reports and choose Transactions by Tax Code.
3. Select a report period and click on Run report.

Check this link to learn more on What to do when BAS amounts look incorrect.

Feel free to reply to this post if you have more questions about your BAS.