Entering Dividend payments into Reckon Hosted

Jacqui_7590379

Hi there, please can someone tell me how to enter a dividend payment in Reckon Hosted? 
Amount is franked and there is no withholding tax.

many thanks

Graham Boast

Hi Jacqui

Set up the following accounts:

Income Accounts
Dividends Received
 - Franked (Gross)
 - Unfranked

Other Current Asset Accounts
Prepaid Tax
- Franking Credits

The dividend is not a goods or service, and not reportable under G1 of the BAS, so you can use the "Record Deposit" function as follows.  This shows a $70 Dividend franked at 30% - so the franking credit = dividend / 70 x 30 or $30.




The Income (gross dividend) = the paid dividend + franking credit (70 + 30 = 100).
Note that the $30 for the franking credit has a minus sign.

Graham Boast 0409317366
Reckon Accredited Consultant
graham@reckonhelp.com.au
http://reckonhelp.com.au/remotesupport.htm

Jacqui_7590379

thanks for that Graham, it is most appreciated. 
Jacqui

p9wwwy

This reply was created from a merged topic originally titled Entering bank interest and dividends received into Quickbooks Pro 2009/10. Not sure how to enter dividends into Quickbooks Pro 2009/10.  Would appreciate any comment on the following.

Sole trader, quarterly BAS using instalment rate.  Receives some dividends from shares and gets some bank interest.

As I understand it, Bank Interest should appear at G1 Total Sales and T1 PAYG Instalment Income on the BAS.  I do that by entering interest as an invoice from a fake customer with tax code INP (input taxed).

Initially I read that a journal entry can do it but I couldn't get it to show up on the BAS because a journal entry doesn't have a tax code (since G1 on the BAS report selects by tax code).

As I understand it, Dividends should appear at T1 and not at G1.

It seems I can just create a net dividend income account without a tax code and enter net dividends (excluding franking credit) into that account.  Then I select that account to appear at T1 on the BAS report (and it won't appear at G1 on the BAS since it doesn't have a tax code).  

I would then create another income account for franking credits, again without a tax code.

Both the net dividend and franking credit accounts would show up on Trial Balance, P&L etc for the accountant doing annual tax returns, but not show up on the BAS report.

Note: As I understand it, G1 includes interest, excludes dividends[1] and T1 includes interest & dividends, excludes franking credits

[1] https://www.ato.gov.au/business/business-activity-statements-(bas)/goods-and-services-tax-(gst)/comp...

[2] https://www.ato.gov.au/business/business-activity-statements-(bas)/pay-as-you-go-(payg)-income-tax-i...