Tax Liability Report Not Picking Up INP Code?

Jenny TJenny T Member Posts: 7

I have a transaction with code INP and this shows in the tax summary report but is not being picked up in the tax liability report totals?

Comments

  • Acctd4Acctd4 Accredited Partner Posts: 891 ✭✭✭
    edited January 4

    Hi Jenny

    Are you using the Reckon default INP tax code or did you set this up yourself?  Both the INP Tax Item & INP Tax Code MUST be configured correctly in order for the system to recognise where it goes on tax reports.  If it shows up on the Tax Summary, it means the tax code allocation is fine so you may just need to go into the INP tax code & ensure you have it linked to the actual INP tax item also:

     .


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • Jenny TJenny T Member Posts: 7

    Thanks Shaz. Good question but I think they would be default tax codes. I didn't actually set up the file but I know that it wasn't actually used very much at all so I doubt that they would have set any codes up but I can't be sure. Below are screenshots of the code and item set up.


  • Acctd4Acctd4 Accredited Partner Posts: 891 ✭✭✭
    edited January 5

    This INP tax code has been setup to use on purchases/expenses, not on Sales which will be why the Tax Liability report is not showing it correctly! 

    GST-Free/Input-Taxed purchases/expenses should be NCF.  Do a FastReport on the INP tax code & see what transactions it has been used on & if it has only been used on income/sales, in the "Tax Item", change the radio button to "Use this item in sales transactions"  (This will automatically change it on the "Tax Code" Item to the "Sales Tax Item" field)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • Jenny TJenny T Member Posts: 7

    It's only been used on two transactions a few years back but I'm thinking the coding is not right. Scenario is we had to pay customs duty on goods we imported to sell here. We've had to pay GST on the value of the goods imported and the shipping company has provided a tax invoice and are based here so I would have thought the transaction should be coded NCG and NCF (there are a few different lines). The previous accountant had said it needed to be coded with the INP/INF codes. Thoughts?

  • Acctd4Acctd4 Accredited Partner Posts: 891 ✭✭✭
    edited January 5

    The previous accountant (like many) doesn't understand RA tax codes - This is probably the case in MYOB where the same tax codes are used on both income AND expenses!!!

    You need to record the original goods bill/chq purchase to the relevant COGS (or Expense) account with NO tax code. 

    Then, on the Import/Customs/Shipping Bill (or Chq) entry you need to record separate lines for NCG/NCF charges including TWO lines for the goods' gross taxable value amount, 1 with NCG & a negative one for the same amount with no tax code (Note: This is just to create the GST component only.  Therefore you want to remove the net expense amount as the amount you were actually charged for the goods has already been recorded on the overseas supplier bill/chq) eg

    Account      Tax      Net Amt   Tax Amt

    Stock         NCG    $ 1500       $ 150

    Stock                    -$ 1500  

    This ensures the correct amounts are recorded for the:

    • Original cost expense/COGS 
    • BAS expense (import taxable value) & 
    • GST component


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • Jenny TJenny T Member Posts: 7

    Great thanks Shaz. I had done the entry as you said but I did have NCF against the negative amount so Ive changed that and finalised my reports now which all balance (surprise, surprise!)

    Thanks so much for your help with this and being so quick to respond.

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