How do I account for a payment that has more GST in it than 10%.

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113396
113396 Member Posts: 65 ✭✭
edited January 2020 in Reckon Accounts (Desktop)
How do I account for a payment that has more GST in it than 10%. It is the first payment of a loan that the GST coponent is all in the first payment and none in subsequent payments. How do I override the 10% prompt

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  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
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    Debbie this used to happen with Telstra bills. Telstra being who they are were allowed to charge all the GST up front (why I don't know) however us as measly little businesses are only allowed to claim 1/11 of what we pay.

    That means it doesn't matter if you try and claim the full GST amount you are only allowed to claim 1/11 of your payment.

    The thing is just to put it in as normal, the program will automatically take 1/11 which you then claim back from the ATO.

    Don't worry it all works out at the end of the year.

  • 113396
    113396 Member Posts: 65 ✭✭
    edited June 2016
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    Thanks Charles - but unfortunately I have to claim it all now, better for business etc - the loan is over 60 months and the accountant will want it claimed now as the gst charge has been now. Any other ideas? I remember doing it once before but can't remember the how to!!
  • Mirko
    Mirko Alumni Posts: 1,256 ✭✭
    edited November 2015
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    Might need to set up a new tax code? - As I'm not an Accountant or Tax agent, I can't confirm (nor can I legally offer advice in ) the Legal/Accounting aspect of this, but from a technical viewpoint that is the only was I can see 100% tax being charged/calculated.
  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
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    Sorry but you can't claim it all now, ATO Ruling something or other I think somewhere in GSTR 2013/1
  • 113396
    113396 Member Posts: 65 ✭✭
    edited June 2016
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    Thanks - I'll just let the accountant deal with it! 
  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
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    Oops Rule change Div 158 of the GST Act says you can do it now. I wouldn't do it as a new tax code I'd make the whole transaction a journal entry to accounts payable and then allocate the client etc
  • Mirko
    Mirko Alumni Posts: 1,256 ✭✭
    edited November 2015
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    Thats why you are the Accountant Charles, and I a Community Manager-Law Student!
  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited December 2016
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    AAH Mirko, yes I did 4 years of Law, never finished, ended up having to make a choice between Law and bringing up kids and eating. Kids and eating won.
  • Mirko
    Mirko Alumni Posts: 1,256 ✭✭
    edited November 2015
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    I'd say you picked the far more rewarding path Charles! I'd do the same in a heartbeat. Thanks so much for your ongoing help on the Community. ^Mirko
  • Kathy Mackinlay_6947388
    Kathy Mackinlay_6947388 Member Posts: 141 ✭
    edited January 2015
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    I put the bill in creditors and use the CAG as the tax code. I then change the tax code amount to what i want to claim. that worked for me. :)
  • Kathy Mackinlay_6947388
    Kathy Mackinlay_6947388 Member Posts: 141 ✭
    edited January 2015
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    image
  • Kay Laws Accredited
    Kay Laws Accredited Member Posts: 72 ✭
    edited March 2017
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    Is the loan for a purchase of motor vehicle or equipment? You will need to get correct advice from your accountant though you generally claim the total GST in the BAS period the item was purchased if this is the case your accountant should advice how they would like this set up as you will need to set up a liability &. GST is not claimable on monthly loan payments.
  • Sally McIntosh, Accredited Consultant
    Sally McIntosh, Accredited Consultant Accredited Partner Posts: 468 Accredited Partner Accredited Partner
    edited February 2017
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    Hi Debbie,

    Say the GST amount is $5000 and the bill itself is $6000 in total.

    If you enter a bill into the system for $55,000 (incl GST) on one line and then the other $1000 on another line that is GST-free (total $56,000). Then if you enter a bill credit for the $50,000 (no tax code) using the same account as before. This will give you a net amount owing of $6000.

    Would this work?

    Kind regards,

    Sally McIntosh (sally@samsolutions.com.au)

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
    edited December 2017
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    Hi Debbie

    This paper covers all the in's and outs.  I think you will find it useful
    http://reckonhelp.com.au/Help/QuickBooksHelp/Handling%20Purchases%20and%20Trade-in%20of%20Motor%20Ve...

    Graham


    Graham Boast 0409317366
    Reckon Accredited Consultant
    graham@reckonhelp.com.au
    http://reckonhelp.com.au/remotesupport.htm

    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • 113396
    113396 Member Posts: 65 ✭✭
    edited June 2016
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    Thank you - yes it is for equipment and I have set it up as a liability. I will claim the GST in this qtr and not on repayments - that is what I was trying to do - I have now forwarded to the accountant - But Thankyou!!

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