Invoices from customers that include GST

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Matt_7822127
Matt_7822127 Member Posts: 2

In the world of supermarket retail it is very common for customers to charge suppliers like me things such as rebates and terms on which they charge GST. However entering these rebates/discounts/charges as either a discount on an invoice or as a credit in a credit note means that the GST component can only be assigned to the GST tax code.

Initially no problem as these charges just go in as a negative GST amount (i.e. GST paid or effectively NCG) which would decrease the amount of GST on sales that you owe the ATO.

However for a food business like mine where we don't charge GST on our goods, we now effectively have a negative GST amount recorded on our BAS statement which of course is not acceptable when reporting to the ATO.

So can anyone suggest an easier way to record these charges with the GST paid component being recorded under the NCG tax code thereby avoiding the need to do endless journal entries and reversals.

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  • John Graetz
    John Graetz Member Posts: 1,653 ✭✭✭
    edited July 2020
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    HI Matt.  I have encountered a problem similar to this and I found a way around it, because my BAS would have been queried if I hadn't done so.  Can't remember now how I did it though.  Can you please provide an example of how this manifests itself, to make it a bit clearer as to what is actually happening?  John L G
  • Matt_7822127
    Matt_7822127 Member Posts: 2
    edited October 2015
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    In the BAS report the GST on Sales at 1A is a negative number due to the GST being recorded as a discount on the invoice. i.e. a credit against GST tax code as it is an input.

    I can just swap the amount over to the GST on Purchases 1B and then enter it in the Business Portal but would rather have it being recorded correctly.

    The easiest way would be for QuickBooks to allow customers to also be suppliers and the bill/purchases and invoices could be offset against each other. But as you know it won't let you do that.

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
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    Hi Matt

    I have customers with similar problems, they are retail and cash is paid out of the till for purchases on a regular basis.  I have set up a bank account "petty cash' , on a sales receipt they enter total till takings for the day the next line is 'less expenses paid from till' with a negative amount, this item is tracked to the petty cash account.  Then they enter the expenses from the petty cash bank account and bring the account back to nil.

    You could try setting up an account to send the discount to without gst then jnl it from the bank account to the expense account including the gst.... but a long way round.

    the quickest is simply when lodging the BAS the negative at 1A is added to 1B the result is the same.