Reckon Accounts 2014; How do I post a GST refund?

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ODL
ODL Member Posts: 1

In the Reckon Accounts Accounting 2014 (NZ) version it only has a 'Tax Payable' liability account available in the default COA.  This is where it is posting all GST (Sales & Expenses); however I posted a GST refund (Bank Deposit) to this account assuming it would off-set.....it hasn't & has made a huge mess :-( When I go into the 'Manage Tax' button it posts GST refunds the same way I have...so I'm assuming this is the correct way rather than a journal - so should it be offsetting & balancing to zero after a refund?  The only other thing I can think of upsetting it is... I haven't added my opening balances from starting part way through the tax year.

Thanks for any help/advice!

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  • Charley
    Charley Member Posts: 546 ✭✭✭
    edited January 2020
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    The default Tax Payable will include PAYG; I set a new header account called as below then change Tax Payable to GST Payable. PAYG in the Payroll Item list can be changed to PAYG Withholding etc

    ATO Running Balance

          GST Payable

          PAYG Withholding

    This way you can follow both separately and can also reconcile the GST back to zero if on accruals and if cash then the difference between Accounts Receivable and Accounts Payable

    Can run you through it if you want; call 0266834083


  • John Graetz
    John Graetz Member Posts: 1,653 ✭✭✭
    edited July 2020
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    Hi ODL.  I have a similar set-up to Charles, although a little different.  My GST account is called Tax Payable and is a stand-alone account.  My PAYG account is called Group Tax and is a sub account under Payroll Liabilities.  Essentially this is the same as Charles.

    As to the entries to pass, I have a simple and effective way to do this, which may not conform to some "purists".  A General Journal is the way to go as follows:

    1.  Debit the Bank Account to which the refund was deposited.
    2.  Credit your Tax Account.

    It is highly unlikely that you will see your account balance revert to zero after this transaction.  Apart from anything else, when you submit your BAS, you only deal with whole dollars, whereas the Tax Account will be 99.9% sure to have a balance ending with cents.  Also, bear in mind what Charles said about the effect that Cash Accounting or Accrual Accounting will have.  Because of the dealings in whole dollars with the ATO, your account is likely to fluctuate each month, either up or down.

    Various people will tend to "write-off" the balance in the account at year-end.  John L G
  • Charley
    Charley Member Posts: 546 ✭✭✭
    edited July 2020
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    John, my journal works in whole dollars and the rest goes to 'rounding' expense either up or down. I also post my journal at the end of the qtr and the BAS payment amount I post to a BAS Clearing account also PAYG Payable
  • John Graetz
    John Graetz Member Posts: 1,653 ✭✭✭
    edited December 2016
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    Good idea Charles re the clearing of the GST account.  I have a mixture of monthly and quarterly returns to deal with - not that this makes a difference, but it is complicated by the fact that there is a mixture of Cash and Accrual Accounting.  I will certainly look at clearing the account now at the time of doing the journal for my Accrual Accounting companies.  I agree that using a posting date at the end of the quarter or month is really the only way to keep a proper handle on whether the account is in sync or if it has thrown out for some reason.  John L G
  • Rav
    Rav Administrator, Reckon Staff Posts: 15,573 Community Manager Community Manager
    edited February 2017
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    Hi ODL,

    Yes it's correct that you will need to process your GST refund through the 'Manage Tax' button.

    Tax reporting access the tax module for its information and this must be entered via the appropriate form, in this case, the manage tax button.
    A general journal will update your accounts but that information is not pulled down by tax reporting.

    We've just uploaded this video which you might want to check out as well -
    https://www.youtube.com/watch?v=NbBKuABhX5s

    Cheers
    Rav

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