Suppliers: Figuring Out Which Entries are Contributing to the Total Balance

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Kia ora,

I am running Reckon Accounts Plus 2018.

As mentioned in previous posts, I have recently taken over the office management position and I am trying to sort out the accounts data in Reckon.

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 are some entries listed as "Bills" and "Bill Pmt - Cheque" ...what I'm trying to figure out, are exactly which items are contributing to the positive balance.

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 entries are for internal tracking purposes only, as all of the payments have gone out via online bank deposit as per our IRD online services account. However, I would like this internal tracking to be as accurate as possible so the businesses Reckon reports are accurate, at least going forward for the new tax year.

It would also be great to ensure that I am entering the DED and GST payments correctly for future entries, to avoid any future entry errors like this from happening again.

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!
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Accounts NZ

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Posted 5 months ago

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Hi Accounts NZ

I am from down under but will try and help based on our tax.....

The tax office Inland revenue (ATO over here) is automatically created as a supplier for some very strange reason, and it shows every entry from any type of transaction that has attracted any sort of tax ....hope this is making sense so far.... personally just make it 'inactive' and forget it exists.

For my clients I create a new Supplier called ATO Client acct (your Inland Revenue Account), then I create a 'tax liability' head accounts, and the 'gst'(tax) liability account automatically generated in Reckon I make a sub-account.  I also create another sub account for the tax from wages and have the wages tax linked to this account.

when I lodge their online gst reports I enter the report (our BAS) as a bill, making sure it all goes to the correct accounts on the bill, the gst account and the tax from wages account, I use the cents, and then an item called 'rounding' for the odd cents not sent to the tax office (inland revenue).  This way the clients only have to pay off the bill when they make the payment to the tax office.

If this didn't make sense email me:  kim@kwikbooks.com.au

PS sorry I don't know NZ tax terminology 
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Accounts NZ

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Hi Kim,

Thank you so much for your detailed reply.

I appreciate your explaining how you have set up the ATO Client account.

I am still wondering if there is a way to correct the previous entries in our books.

Our system isn't showing every tax accumulated in the system, only the GST and DED payments which have been entered manually. I think the way the supplier is set up is correct (although having a sub-account also makes sense), but the payments must not have been entered properly for a balance to be sitting there.

Many thanks!