Paying activity statement where there is a credit for GST but a debit for PAYG tax

CarolD_10863204 · June 2022

I can process a payment to the ATO with a journal entry but is there a way to process a credit for GST and the payment for PAYG less the GST credit through the 'Manage Tax' and 'Pay Liabilities' processes in reckon Hosted? We don't lodge them separately with the ATO, which makes it difficult to use the system set up in Reckon which seems to rely completely on each being processed separately.

Acctd4 · June 2022

Rather than having 2 separate transactions, use the one Payroll Liability Cheque for this.

You generate it - as usual - for the PAYGW component, then click on the Expenses tab to select & enter the GST component (Account & amount). Where the GST is a credit, simply enter this amount as a negative.

NB: After the above, click on the Recalculate button at the bottom to "update" the totals.

This is much more efficient & accurate as it reflects the one payment from your bank account 😁

Kris_Williams · June 2022

I process payments to tax office using a bill entry and refunds using a journal entry dated the end of the relevant quarter - many will say this is incorrect but it’s what I have done for all of my clients since the very first BAS and I have always been able to reconcile the balance in the tax payable account at the end of each quarter. I used to do an invoice for refunds but updates prevented me from using the tax payable account on an invoice so I started doing it via a journal

Acctd4 · June 2022

@Kris_Williams The preference for my method above is because it also ensures the Payroll Items are cleared, not just the Accounts. Some of the Payroll reports rely specifically on the Payroll Item movements - eg Payroll Liability Balances - so these reports don't work if not done this way 😬

CarolD_10863204 · June 2022

https://community.reckon.com/discussion/comment/20629518#Comment_20629518

Thanks Shaz - great solution.

CarolD_10863204 · June 2022

https://community.reckon.com/discussion/comment/20629520#Comment_20629520

Yes, I've inherited someone else's bookkeeping methods and to be honest I can't use any of the liability reports anyway because of how things have been processed previously. Can't wait to start a fresh year :-)

Acctd4 · June 2022

Yes, it's a headache isn't it ? 😖 I go in & enter Payroll Liability Adjustments to clear the balances out for payments made outside of this area in order to match where they're currently at so I can process that way going forward!

Kris_Williams · June 2022

I’m only use the tax summary report, add or deduct PAYG, then enter as Shaz says on one transaction using a minus for GST refunds

Paying activity statement where there is a credit for GST but a debit for PAYG tax

Comments

Shaz Hughes Dip(Fin) ACQ NSW, MICB

* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

Accounted 4 Bookkeeping Services

Ballajura, WA

(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

Shaz Hughes Dip(Fin) ACQ NSW, MICB

* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

Accounted 4 Bookkeeping Services

Ballajura, WA

(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

Shaz Hughes Dip(Fin) ACQ NSW, MICB

* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

Accounted 4 Bookkeeping Services

Ballajura, WA

(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

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