Hi there cmarkenz,

It's vital that all your transactions be entered correctly for your books to be well balanced. QuickBooks Online is a great tool able to help you keep track of tax on transactions in order to help you know the amount owed to the government. I can provide some information about tax codes.

The only tax code for sales that wouldn't affect the 101 line would be Out of Scope, so that would be the reason Exempt lines of sales transactions are showing up on the report. In order to have it not show up, it would need to be Out of Scope. In order to know if it should be put out of scope, I recommend reaching out to your accountant. Their accounting knowledge will be able to guide you in which way would be best to have the taxes set up in your transactions so all is well balanced. You can invite your accountant to your books so they can see the transactions by going to the My accountant tab. There's also a Find a pro to help button in this section that can help you find a local accountant that has experience with QuickBooks Online.

If you have any other questions, feel free to reach out here.