Pending Invoices and GST on TAX Summary report

Lyn_10072495

Im having problems with figures 'changing' on my tax summary reports. For example, I process and reconcile the accounts for a particular month and print out a tax summary report for my records. Several months later, if I choose to print out that same report, the figures have changed. Ive been wracking my brain as to how this has happened. I dont make changes to Invoices once they have been reconciled and dont delete Invoices. However, Im wondering if a Pending Invoice would have bearing on this? Again for example, I create an Inovice in the month of October and leave it with a pending status. I then reconcile the books for October and print out a Tax summary report. Then in November when I finally get all the details, I go back to that pending Invoice, CHANGE the date and mark it as final. It I were then to go back and look at that tax summary report, would it show a lesser figure than originally?

Acctd4

Hi Lyn

Pending transactions are non-posting which means they don't impact any financials. Once the invoice is saved as Final, it is only at that point that it will be included in your BAS figures.

NOTE: The invoice date will only impact BAS on an Accruals (Non-Cash) basis. If you're generating your BAS reports on a Cash basis, only the date it is PAID (eg the payment) will be reflecting in your BAS figures.

Lyn_10072495

Thank you Shaz. Id really hoped this wasn't the answer as I'm more frustrated then ever! While this is a big and loaded question....any ideas as to what is happening given my explanation as above re not changing anything?

Kris_Williams

By turning a pending transaction to a final one you are in fact changing things. I would suggest you change the date on the invoice when you do this to a date in the current BAS quarter

Acctd4

@Lyn

You are changing things - you're finalising a previously non-posting transaction & dating it in the subsequent month.

" ... for example, I create an Inovice in the month of October and leave it with a pending status. I then reconcile the books for October and print out a Tax summary report. Then in November when I finally get all the details, I go back to that pending Invoice, CHANGE the date and mark it as final. It I were then to go back and look at that tax summary report, would it show a lesser figure than originally ..?"

On an Accrual basis - If you view the Tax Summary for October, it wouldn't include the Pending invoice. When you finalise it & change the date to November, it shouldn't change October (as it wasn't included in that month to start with) but it will increase November though.

What's the purpose of Pending invoices in your scenario ? It may be better to utilise Sales Orders or Estimates & invoice (as Final) from these instead ? Sales Orders & Estimates are non-posting also & do not impact financials at all.

Lyn_10072495

Thank you. Thats what I suspected. Thanks for explaining things quickly and easily. I appreciate you time and patience.

Acctd4

You're very welcome Lyn 😊