Using TAX-->BAS for payment but no bank transaction is displayed anywhere

  • 1
  • Question
  • Updated 3 years ago
OK. I am not an accountant, so plain English please...
I have (for the first time) used the Reckon One BAS payment page, including the Document ID etc. The only problem is it is not connected to my bank account at all, so how does it become an "actual" transaction in my bank account? Is there something else I have to do in the journal or something? Seems like stupid double handling to me. Or is there a setting I am missing somehow to connect the BAS payments to a bank account?
Photo of Dave Dennis

Dave Dennis

  • 368 Points 250 badge 2x thumb
  • frustrated

Posted 3 years ago

  • 1
Photo of John G

John G, Information Support Analyst

  • 27,530 Points 20k badge 2x thumb
Thanks for asking Dave,

The BAS Report in Reckon One is a preparation sheet only.  It does not lodge with the ATO nor does it create any bank payment.  These features will be included in a future update.

You should print out your BAS report and use it to complete your BAS return.  

To make your payment go to Day to Day > Money Out > Make Payment.  
The Supplier is the Australian Taxation Office (ATO) and you will need to make entries for the relevant accounts used in your BAS - GST Received/Paid (or Tax Payable); Payroll Liabilities PAYG withheld; PAYG Instalments; FBT; etc.


regards,
John
Photo of Dave Dennis

Dave Dennis

  • 368 Points 250 badge 2x thumb
Thanks, John. I'm part way there but I'm still not sure what entries to make in the allocation section below. I have entered the Contact as ATO and Bank account as my general business transaction account in the top half of the screen.
I created an allocation line using the account "GST Paid" and amount but still no connection to the actual bank account line items. What is missing?
Photo of John G

John G, Information Support Analyst

  • 27,530 Points 20k badge 2x thumb
Thanks Dave,

I'm not quite sure what you mean by "no connection to the actual bank account line items".
Have you already made the actual payment to the ATO and now have an imported bank transaction for it?

regards,
John
Photo of Dave Dennis

Dave Dennis

  • 368 Points 250 badge 2x thumb
I appreciate your help - accounting is a minefield for a sole trader creative.
The payment was made last year and I am manually entering it into my books. What I mean is that when I submit the above payment it does not appear in my bank account transactions under Banking-->Bank accounts-->ANZ Business. I can't reconcile a statement if not all the entries are there... :-/
Photo of John G

John G, Information Support Analyst

  • 27,530 Points 20k badge 2x thumb
Thanks Dave,

Once you hit Save & Close the transaction will be in your bank account register.  Click on the month icon to view transactions for that month.  Check the options and date range at the top of the screen as selections there may hide the transaction from view.

If you need further help why not call Technical Support who will be able to work through with you one on one in real time.


regards,
John
Photo of Dave Dennis

Dave Dennis

  • 368 Points 250 badge 2x thumb
Not sure what I was doing wrong, but I thought I did exactly that. Maybe I wasn't looking at the dates correctly as you suggest. Thanks for your time.
Photo of Dave Dennis

Dave Dennis

  • 368 Points 250 badge 2x thumb
I think maybe this is a better answer, or at least more clear to me:
https://community.reckon.com/reckon/topics/how-to-add-gst-101-payment-in-reckon-one
Photo of Qwerty

Qwerty

  • 7,906 Points 5k badge 2x thumb

02/03/17

Hi Dave,

A new liability account 'ATO – Integrated Client Account’ was recently added to Reckon One in the November 2016 update. See the link below for more information.

https://community.reckon.com/reckon/topics/reckon-one-enhancements-24-november-2016

 

Here is my 2 cents on this topic.


Australian books have the following four liability accounts relating to tax.

GST Payable

GST Collected

GST Paid

ATO - Integrated Client Account


The GST Payable liability account is the parent account & the other three are sub accounts of GST Payable.

The GST Collected liability account tracks the tax amounts associated with sales transactions.

The GST Paid liability account tracks the tax amounts associated with purchase transactions.

In the event of making a payment to the ATO, you could enter either a transfer, journal or payment using ATO - Integrated Client Account to record/offset the amount you have paid to the ATO.

In the event of getting a refund from the ATO, you could enter either a transfer, journal or receipt using ATO - Integrated Client Account to record/offset the amount you have received from the ATO.


So to recap...

GST Payable (this the the parent account & you don't really need to use it)

GST Collected (tracks tax on sales)

GST Paid (tracks tax on purchases)

ATO - Integrated Client Account (can be used to record ATO payments/refunds to offset the amounts in both GST Collected & GST Paid accounts)


Regarding whether to use a transfer, journal or payment/receipt to record ATO transactions.

Transfers are simple however you cannot include a contact in a transfer transaction so probably not ideal if you want to report on contacts. If you want to include a contact (i.e. ATO contact) then i'd recommend using either a journal or payment/receipt.

Currently there is no default ATO contact in R1 so you would need to add this manually.

The payment/receipt is straight forward. Select the contact, select the bank, select the ATO - Integrated Client Account & specify the amount.


As for journals...


In the event of making a payment to the ATO, the journal would... 

Debit the ATO - Integrated Client Account (i.e. reduce the balance of the liability account)

Credit the relevant bank account (i.e. reduce the balance of the bank account)

Note: The tax component on sales are tracked as positive amounts in the GST Collected liability account. So the balance of this account is increased by sales that have tax amounts. ATO payments using the account ATO - Integrated Client Account reduce the balance of this account. So the ATO - Integrated Client Account balance offsets the GST Collected account balance.


In the event of receiving a refund from the ATO, the journal would... 

Debit the relevant bank account (i.e. increase the balance of the bank account) 
Credit the ATO - Integrated Client Account (i.e. increase the balance of the liability account)


Note: The tax component on purchases are tracked as negative amounts in the GST Paid liability account. So the balance of this account is reduced by purchases that have tax amounts. ATO refunds using the account ATO - Integrated Client Account increase the balance of this account. So the ATO - Integrated Client Account balance offsets the GST Paid account balance.

(Edited)