Tracking Tax with ATO

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MM_7769277
MM_7769277 Member Posts: 115 ✭
edited February 2017 in Accounts Hosted
Using Reckon Hosted 2016 multi currency.

I needed to build a new Company file for a change in business structure. In the Supplier list I noticed the entry for the ATO has two drop-down menus for tracking tax:

image

My questions are:

1. Which accounts should I select for both Sales and Purchases?
2. We also report on New Zealand GST. Should I set up new accounts in our CoA to report on NZ GST?

Thanks
MM

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  • Adrian_6974554
    Adrian_6974554 Member Posts: 191 ✭✭
    edited February 2017
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    Hello MM

    Do you report both AUS and NZ GST?

    If you report both.

    Setup a new chart of account, Other Current Liability account to hold the NZ GST.

    Setup a new supplier and set as Tax Agency, the link both Track Tax to the NZ GST account created above, set applicable Period reporting.

    Setup Tax Items for NZ tax codes required applicable rate etc.
    Setup Tax Codes linked to the Tax Items

    Then setup your invoicing items to link to the new Tax Codes.

    You then probably need to set up multi currency and have separate AR and AP ledgers for then tracking the NZ currency.

    Adrian.

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