Processing ATO General Interest Charges and Lodgement Penalties in Hosted

Piece of cake, have this all the time. Create Expense "Interest & Penalties". The best way to do the liability account is to create an "ATO Running Balance" liability account. GST Payable and PAYG Payable should be sub accounts of this. Then the journal is Debit Interest & Penalties and credit ATO Running Balance. That way your ATO Running Balance account with GST & PAYG should reconcile with your Integrated Client account.

If you want me to run you through it call me 0266834083

Sally, are you then reconciling your GST & PAYG back to the liability accounts. I use a BAS Suspense (bank) account. When I pay the PAYG Liability it comes from the BAS Suspense and then the GST liability is a journal at the end of qtr (or period)

GST payable            123.25 Debit                            GST due on sales

GST Payable                                  50.00 Credit        GST reclaimed from purchase

BAS Suspense                                73.00                   BAS Suspense

Rounding                                            00.25                 Rounding

With the PAYG and GST in the BAS Suspense it will then equal your BAS, so when you "Pay Tax" you just pay it to the BAS Suspense. If you do the journals and PAYG Liability at the end of the quarter then the PAYG liability account will reconcile back to zero and the GST Liability account will do the same if you are on accruals for tax, if however you are on cash then it will need to reconcile back to the difference between A/R GST and A/P GST.