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How do I process a GST Payment to the IRD in Reckon One?

Wendy Gibb
Wendy Gibb Member Posts: 14
edited July 2019 in Reckon One
How do I process a GST payment to the IRD?  Do I need to create a GST Payments account?  I have tried this but I can't get it to become a sub account of GST. Please help.

Comments

  • Qwerty
    Qwerty Member Posts: 283
    edited March 2017
    Hi Wendy,
    New Zealand books use the following liability accounts to track GST amounts.
    The "GST on sales" liability account tracks the GST amounts associated with sales transactions. The "GST on purchases" liability account tracks the GST amounts associated with purchase transactions.
    In the event of making a payment to the IRD, you would enter a journal using the "GST on sales" account to record/offset the amount you have paid to the IRD.
    In the event of getting a refund from the IRD, you would enter a journal using the "GST on purchases" account to record/offset the amount you have received from the IRD.
  • Wendy Gibb
    Wendy Gibb Member Posts: 14
    edited September 2015
    Hi Qwerty

    Thanks for your reply.  What do I code the GST payment that is showing in the bank account to?
  • Qwerty
    Qwerty Member Posts: 283
    edited March 2017
    In the event of making a payment to the IRD, the journal would...

    Debit the GST on sales account (i.e. reduce the balance of the liability account)
    Credit the relevant bank account (i.e. reduce the balance of the bank account)

    Note: The GST component on sales are tracked as positive amounts in the GST on sales liability account. So the balance of this account is increased by sales that have GST amounts. IRD payment offsets this account & therefore reduces the balance of this account.


    In the event of receiving a refund from the IRD, the journal would...

    Debit the relevant bank account (i.e. increase the balance of the bank account)
    Credit the GST on purchases account (i.e. increase the balance of the liability account)

    Note: The GST component on purchases are tracked as negative amounts in the GST on purchases liability account. So the balance of this account is reduced by purchases that have GST amounts. IRD refunds offset this account & therefore increase the balance of this account.
  • Wendy Gibb
    Wendy Gibb Member Posts: 14
    edited September 2015
    But won't I still have an unreconciled entry on the bank statement?
  • Qwerty
    Qwerty Member Posts: 283
    edited March 2017
    The journal transaction will show in the bank account & bank account reconciliation (just like any other expense to the bank account) as it affects the balance of the bank account.
  • Wendy Gibb
    Wendy Gibb Member Posts: 14
    edited September 2015
    Thank you :)
  • Wendy Gibb
    Wendy Gibb Member Posts: 14
    edited September 2015
    I have just noticed that the GST payment transaction is still sitting under the NEW tab with a reconcile button next to it.  The transaction is also showing under the allocated tab.  Is this normal? When I try to reconcile the transaction under the NEW tab the system comes up with an unexplained error message.  Can you shed any light on this?
  • Qwerty
    Qwerty Member Posts: 283
    edited March 2017
    The transactions shown in the Allocated tab are the transactions that have already been saved in the book.

    The transactions shown in the New tab are the transactions that have been imported from a bank statement or bankfeed & aren't yet saved in the book.

    The reason why you are seeing the transaction in the Allocated tab is because this is the existing transaction you previously saved in your book. The reason why you are seeing the transaction in the New tab is because this is a transaction from the bank statement/bankfeed import.

    Are the transactions shown in the New tab a result of manually importing a bank statement file (i.e. CSV or QIF file) or are they the result of a bankfeed setup for this bank account? Depending on the answer I can give you a suggestion on how to deal with this transaction in the New tab.

    Regarding the unexpected error that occurs when clicking the Reconcile option for this transaction in the New tab.... i'm not familiar with that issue & the best people to chat with on that would be the Reckon Support team. To contact the support team, click the Support icon located in the top right of your book

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  • Wendy Gibb
    Wendy Gibb Member Posts: 14
    edited September 2015
    Hi Qwerty

    Yes the transactions in the New tab are the result of a manual upload.  But I imagine the same problem will occur from the bank feed also?
  • Qwerty
    Qwerty Member Posts: 283
    edited March 2017
    Ok if it's a manual upload then I have an easy solution.

    Seeing this transaction is already saved in your book (i.e. shown in the Allocated tab) you can just ignore it in the New tab, deal with the other remaining transactions in the New tab. Then finish/complete your reconciliation via the Allocated tab for the period your are dealing with.

    Upon your next manual import for this bank (i.e. when you import the next period statement), any existing transactions remaining in the New tab replaced by the transaction in new bank statement import.
  • Scott
    Scott Reckon Staff Posts: 84
    edited July 2019
    Hi Wendy,

    Just an update on this thread relating to an issue you mentioned within your 5th entry/post for this thread. 

    "When I try to reconcile the transaction under the NEW tab the system comes up with an unexplained error message.  Can you shed any light on this?"

    The reason why you experienced this issue was due to the quick match functionality not accepting journal transactions. This issue is now fixed.


    Regards,
    Scott.
  • Accounts NZ
    Accounts NZ Member Posts: 36
    edited June 2019
    Kia ora,

    I am using the Reckon Accounts Plus 2018 version and I am new to Reckon Accounts.

    I am struggling with how to record Tax payments made by the employer for GST and DED.

    I recently took over the office management position at the company, so Reckon was already set up, but I believe the IRD payments have been recorded incorrectly.

    Inland Revenue Department is listed as a "Supplier" with a positive "balance," however, all of the entries are in reference to GST and DED payments which have been made by the business to the IRD. Some are listed as "Liability Checks", others are listed as "Cheques," there is just one entry listed as "Bill" and "Bill Pmt - Cheque" ...what I'm trying to figure out, are exactly which items are contributing to the positive balance, and how to get this balance back to zero, and move forward recording these payments in a more accurate manner that doesn't rack up a positive balance (as though we owe IRD for these payments, which we have already made).

    These payment entries are for internal tracking purposes, as all of the payments have gone out via online bank deposit as per our IRD online services account. However, I would like this internal tracking to be as accurate as possible, at least going forward for the new tax year.

    There are many entries, so I'd like to know if there is a way to quickly (or at least pretty quickly), find out which entries are contributing to the overall Supplier "Balance" total and correct the entries.

    The DED payments have been entered as "Liability Cheques" and then broken down in the liability cheque by payroll item "ESTC," "Kiwisaver", "Kiwisaver Employee Contribution," "PAYE," "Student Loan."

    The GST payments have been listed as "Cheques" and "Bill/Bill Pmt - Cheque"

    Any advice/recommendations would be much appreciated!

    Many thanks!
  • Rav
    Rav Administrator Posts: 13,248 Community Manager Community Manager
    edited May 2019
    Creating new thread - post related to Reckon Accounts Business Please reference the new conversation here: Tax payments for GST & DED in Reckon Accounts Plus New Zealand