How to Record GST and DED Payments to IRD

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  • Updated 6 months ago
Kia ora,

I am using the Reckon Accounts Plus 2018 version and I am new to Reckon Accounts.

I am struggling with how to record Tax payments made by the employer for GST and DED.

I recently took over the office management position at the company, so Reckon was already set up, but I believe the IRD payments have been recorded incorrectly.

Inland Revenue Department is listed as a "Supplier" with a positive "balance," however, all of the entries are in reference to GST and DED payments which have been made by the business to the IRD. Some are listed as "Liability Checks", others are listed as "Cheques," there is just one entry listed as "Bill" and "Bill Pmt - Cheque" ...what I'm trying to figure out, are exactly which items are contributing to the positive balance, and how to get this balance back to zero. I'd like to move forward recording these payments in a more accurate manner that doesn't rack up a positive balance (as though we owe IRD for these payments, which we have already made online).

These payment entries are for internal tracking purposes, however, I would like this internal tracking to be as accurate as possible, at least going forward for the new tax year.

There are many entries, so I'd like to know if there is a way to quickly (or at least pretty quickly), find out which entries are contributing to the overall Supplier "Balance" total and correct the entries.

The DED payments have been entered as "Liability Cheques" and then broken down in the liability cheque by payroll item "ESTC," "Kiwisaver", "Kiwisaver Employee Contribution," "PAYE," "Student Loan."

The GST payments have been listed as "Cheques" and "Bill/Bill Pmt - Cheque"

Any advice/recommendations would be much appreciated!

Many thanks!
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Accounts NZ

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Posted 6 months ago

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Hi Accounts NZ

The balance shown in your Supplier list is simply a running balance overall total of transactions for that Supplier - It is NOT (& should not) be read as what is actually owed at a particular point in time because this balance is ALL transactions in real-time.

As appears to have been the case in your file, the correct way to record payment of GST (if the payment includes other government liability components) is via a Liability Cheque.  If the payment does not include any payroll-related liabilities then a standard Cheque is the correct method (as is created when entering via the Tax Activities > Pay Tax option under the Suppliers dropdown menu.

Personally, I'm not a fan of putting already-accrued liabilities onto a Bill, but it still works & some people like to see it  their Accounts Payable.

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com







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Thank you very much Shaz! I really appreciate your reply. It was confusing to me as all of the other suppliers had a zero balance, and I wondered why the IRD was the odd one out... I am guessing because the liability cheques are processed by reckon in a different manner than standard cheques? Apologies for my ignorance in this software, I am still very new to it.