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Tax Payable account help

Becnew6028Becnew6028 Member Posts: 2

Hi,

I am hoping someone could help me on why my journal entries in Reckon Hosted are posting the GST to Tax payable account and not the Goods and services Tax account like it does when I enter a purchase through Bills?

I have entered Plant and Equipment CAG in the journal entry and the GST portion is going the the Tax payable account on the balance sheet. But If i enter the same entry as a bill the GST portion goes to the Goods and services account on the balance sheet like all my other Expenses and sales. Does anyone know what I have set up wrong?


Bec

Comments

  • Acctd4Acctd4 Accredited Partner Posts: 1,062 ✭✭✭

    The Tax Payable account is the default account created by Reckon for GST, when you indicate in your company file setup that you're GST-registered. This is where all the GST posts to automatically.

    It sounds like this is happening because you have manually set up an additional account for it & when you create a Journal, you can select any account you want to use in it.

    • To rectify this double-up issue, "merge" you're manually created account into the default one:
    • In your Chart of Accounts List, right-click on the "Goods and Services Tax" account (that you created).
    • Edit the account name to "Tax Payable" (Ensure you enter it exactly!) You will get a pop-up prompt advising that account name already exists & asking if you wish to merge them. Click on Yes

    TIP: Once merged, I'd recommend changing the account name if that makes it easier to identify - I always change it to "GST Payable") Just right-click on the account & edit the name accordingly then click OK to save 😊

    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/

  • Becnew6028Becnew6028 Member Posts: 2

    Thank you so much Shaz, this makes sense and is very helpful I will do this now.


    Thanks again :)

    Bec

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