Where can I change the default account for Tax. My tax codes are defaulting to Payroll Liabilities! So all gst is in this account HELP!

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Where can I change the default account for Tax. Currently my tax codes are defaulting to Payroll Liabilities! So all gst is ending up in this account. HELP!
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Sylvia Johnston

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Posted 10 months ago

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John G, Information Support Analyst

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Hi Sylvia,

Sorry to hear of this problem.

Go to Lists > Tax Item List, right click GST and select Edit Item.  In the Tax Agency field click the dropdown and take note of all Tax Agencies listed - hopefully there will only be one.  

Please go to Supplier Centre - do you have more than one Supplier that refers to the Australian Taxation Office in some form (ATO, Aust Tax Office, Tax Agent, etc)? The default supplier is Australian Taxation Office.  

Right-click them and select Edit Account, and which one has the box Supplier is a Tax Agency ticked?  For the one that does, click on the Tax Agency Info tab.  At the bottom you'll see the ledger accounts GST is being assigned.  The default account is Tax Payable; yours will be showing your Payroll Liabilities account.  

You can't change these assignments once they have been used in a transaction.  The straightforward solution will be to remove the tax code from every transaction which will then allow you to change the ledger account assignment on the Tax Agency Info tab to the correct account, and then reapply the tax codes.

If you have more than one Australian Taxation Office supplier, then these transactions may be spread over a number of suppliers which will have to be consolidated.  We have an old guide here to help you with it - it still refers to QuickBooks and its images may look a little different to current views.

You may have to check your Tax Item setup and ensure each Tax Item is assigned to the correct Tax Agency.

Its a big job and you may want to get some help from one of our Accredited Partners or other experts on the Community.  


Good luck.


regards,
John
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Sylvia Johnston

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Thanks John, I found this out the hard way I guess! What I have managed to do now that I can locate where the default account is set up, is merge these accounts.  It was a little tricky but something Charley and I had to when I encountered a different coding problem last month. With a little bit of this and that i have managed to trick the income into going into the correct accounts! At least I learn from my mistakes! Thanks for jumping in so quickly, truly appreciated!