Paying activity statement where there is a credit for GST but a debit for PAYG tax
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.
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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 π
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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 itβs 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
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@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 π¬
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Thanks Shaz - great solution.
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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 :-)
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Yes, it's a headache isn't it ? π 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!
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Iβm only use the tax summary report, add or deduct PAYG, then enter as Shaz says on one transaction using a minus for GST refunds
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