How to enter a payment made for GST only to a supplier

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We had to make a payment to Express Customs for GST amount on sales import of rugs totaling 5000 and not sure how we enter that into reckon if someone could help that would be great.
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Posted 1 year ago

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Hello Margaret

In your bill/cheque

Allocate to your purchases account $50,000 with NCG tax code $5,000

Then on the next line purchases account negative $50,000 no code.

This will then leave the $5,000 you paid, and will pick up the $5,000 on your BAS.

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Jay Jay, Employee

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Hi Margaret, 
Please refer to the follow info for instructions, what Adrian mentioned is not Recommend by us as system do not like any negative amount in the transaction. 

All necessary  transactions will be entered over a period of time.

Create service items for the charges associated with previously delivered import goods:

·         Customs Duty

·         Transport Costs

·         Insurance charges

Create a Customized Tax Code for no GST applicable - see below.


Transaction 1 – Enter Bill for goods received at the contract price.

  1. Create a new Tax Item and Tax code for GST Not Applicable

    1. Create the Tax Items:

                                          i.    Lists > Tax Item List > Item button > New

                                         ii.    Enter a Name – eg: NTA-P (no tax applicable for purchase side transactions)

                                        iii.    Tax Rate (%) or Amt stays at 0%

                                       iv.    Tax Agency is Australian Taxation Office

                                        v.    Click the Radio button for Use this item in purchase transactions

                                       vi.    Tax Return Line is Goods and Services Tax

                                      vii.    Click OK to save.


    1. Create the Tax Code

                                          i.    Lists > Tax Code List > Tax Code button > New

                                         ii.    Enter a Name – eg: NTA (no tax applicable)

                                        iii.    Taxable Information – Purchase Tax Item: select the Tax Item created (eg NTA-P)

                                       iv.    Click OK to save.


  1. Enter your bill using:

    1. The contract price being paid;

If a foreign currency, enter the reference exchange rate;

    1. Tax code is NTA (created above)


Transaction 2 – Enter Bill for imported goods received and Customs Office charges

  1. Enter the Bill using:

                                          i.    The date supplied by the Customs office;

                                         ii.    The same items entered in 2 above;

                                        iii.    Use the tax code NCG (or other customised tax code for 10% for purchase side transactions);

                                       iv.    Enter the same items as in 3(ii) above except with a negative quantity and use the tax code NTA created in 1 above;

                                        v.    Add in other charges (Transport, Insurance Customs Duty, etc) with related tax codes.


This process will ensure that your Profit & Loss reports will use the contract price you paid and the actual amount of GST paid, and report in the Business Activity Statement the Customs Office valuation of your imported goods. 

Please Note that the NTA tax code created here should not be selected for any field in the Business Activity Statement.