GST Refund

Question

Hi,

I am trying to enter the GST and PAYG figures in Reckon Hosted for Sep 2022 through the liability cheque. The refund is $6290.00 which we have received.

Liability Report.pdf

I have attached our liability report and the PAYG is $4262.00.

Under payroll liabilities I have entered the PAYG amount. Under expenses I enter the GST

figure? I have tried so many possibilities, but it won't let me save the cheque. I have also entered the refund through Manage tax.

I am not sure what I am doing wrong. Can anyone suggest how I can enter the correct figures in the liability cheque please.

Thank you.

Wendy

Acctd4 · Answer

Hi Wendy

I can definitely provide you with some 1-on-1 customised training - Feel free to email me direct & we can schedule a session if you'd like 😊

Wendy_10862352 · Answer

Hi Shaz,

I would never of  got that right. I really appreciate your time in showing me the correct procedure.

The balance of the Australian Taxation Office supplier is showing a negative figure of $1803.54 but I believe it may be an older transaction. I would really like to reconcile the GST and super accounts to make sure all is ok as I took over this position in August 2022.

Can I get you to guide me or have a look at the accounts for me? I am happy to pay or do I need to find someone else. Any suggestions would be appreciated.

Thank you.

Wendy

Acctd4 · Answer

Hi Wendy

That's because the result is a refund! 😊

To record this, requires multiple steps - There are a few ways to process the multiple components but I'd recommend using a Clearing account.  This is a dummy bank-type account for the purpose of contra transactions (eg receiving & making payments to balance to zero)

First, enter the GST credit - as a positive figure because it's a deposit transaction - via Make Deposit, Deposit To your Clearing Bank account:

This will give you a balance of $ 10,551 in this account (as per your screenshot "Net GST to pay ..." - NB: BAS uses whole dollars only, no cents).

NOTE: Due to a long-term glitch in the program, the Payee name (in this case, "Australian Taxation Office") drops out of stand-alone deposit entries:

To overcome this, click in that field (highlighted above) & enter/select Australian Taxation Office.  Click Record at the bottom of the screen & Yes to confirm the change when prompted.

Then - out of that Clearing account balance, enter the Payroll Liability Cheque - as normal, JUST for the PAYGW component.  (Make sure you select the Clearing account to pay it from!) :

This will then leave a balance of $ 6,289 in the Clearing account that you should receive as a refund from the ATO.  When received, simply enter a Write Chq OUT of the Clearing account to your main bank account to reflect this EFT deposit:

(IMPORTANT: Do NOT use  any tax code on this transaction as it is simply a movement of funds between accounts !)

The above process ensures:

* The PAYGW Payroll Item (& associated liability account) are reduced by the PAYGW payable
* The (full) GST credit amount is correctly recorded
* The amount actually received as a refund is correct
* Everything balances!