How do I update default accounts for my Tax Agency supplier?
My company has changed significantly since our file was first set up, and unfortunately the original set up was not correct. I am currently trying to update the default account that tax is captured in. When I am in the supplier card of my designated Tax Agency, under the "Select the account(s) for this agency" I cannot change the accounts that are used to track tax on purchases and sales. The error that comes up is "Transactions have been created on this account, you cannot change it anymore".
To try to overcome this I added a new supplier card and marked it as a Tax Agency, then went into my Tax Items and select it as the Tax Agency against the tax codes, but I received a similar message - You cannot change the tax agency after using the tax item in a transaction".
All I want to do is correct future transactions so that tax on sales goes to my Tax Collected account and tax on purchases goes to my Tax Paid account. How can I do this?
Note: I am using ReckonAccounts Premier: Manufacturing and Wholesale Edition 2013.
Comments
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Hi Lisa, Setting up this up needed to be done when your data file was set up & prior to any transactions being processed. By default Reckon allocates all purchase & sales to the one tax payable account . An option for you to be able to achieve the out come you are wanting you could create a new data file . Kay kmlbookkeeping@bigpond.com0
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Hi Kay,
A whole new company file? That really isn't something we want to do.
I have also had a further look in our test company ...
It appears I can create (in the following order) ... A new Tax Agency in the supplier cards, new tax items and new tax codes, then make all of the old items in active, and it is like we are starting fresh ...
Does this seem like a solution to you?
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But the names do have to be different ... i.e. G.S.T. not GST0
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In the current version of the software there are not separate tax accounts for collected and for tax paid. These were merged in an earlier version. The other software program has separate accounts for tax collected and tax paid. It's not necessary in Reckon Accounts. Th is helpful when it comes to reconciling your integrated client account at the end of the quarter.0
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Lisa, You could rename you current Codes & Tax items ie GST O (GST old) create you new Tax Codes & Items as they are now GST make old Codes & items inactive. So you would still be codeine transactions as you are now ie GST, NCG ect This transition would need to be done at the start of a BAS period & all transactions in the new period would need to use the new codes for accurate reporting. Kind Regards Kay0
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Hi Kay,
I did try that, but unfortunately you cannot even change the name of the account when there have been transactions entered using it. But yes, I agree about doing it all after a period to be cleaner.
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I am not sure why you require separate accounts for GST liabilities and Input Tax Credits. In the single Other Current Liability Account I use to track GST, liabilities are displayed as positive amounts and Input Tax Credits as negative amounts. It is possible to generate a report of the account for a specified date range, to Export the data as an Excel spreadsheet and then to filter the positive amounts to obtain a report of the liabilities. If a filter for negative amounts is applied, then the Input Tax Credits can be reported.0
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Hi Kevin. As discussed, you don't need separate accounts. Reckon works perfectly well with one account.0
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Thanks Kevin.
We do not require separate accounts, it is simply our preference. As mentioned, the original set up was not done well, so we currently have seven GST accounts, none of which are working correctly. We are simply looking to streamline our accounts.
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Hi Lisa,
Yes sorry that is correct you are unable to amend name one transactions have been processed, so new Tax codes ie GSTN (GST new) might be better for keying entries.
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Hi Kevin & Kevin,
No you don't NEED to have separate accounts, however it is an option & some people prefer to have the separate accounts
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The benefits of the flexibility of Reckon Accounts, user has the option to choose :-)
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Yeah I can't think why unless they are confused. The liability is only ONE account. It makes next to no sense to have two accounts for one physical account. You see the workarounds people have to go to reconcile the accounts to the ICA and you wonder why people would just create work for themselves. I've even seen people creating tax clearing accounts in other programs to get around the issue. Like I said creating work. Anyway this is not getting anywhere. Let's agree to disagree.0
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Thank you everyone for your suggestions.
I am happy with the plan-of-attack I have determined with your assistance.
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