GST Input not being recorded
  • JeffG
    Posts: 91
    Joined: Sat Aug 31, 2013 6:50 pm
    Location: Sydney

    GST Input not being recorded

    by JeffG » Mon Mar 05, 2018 1:34 pm

    I am clearly missing something obvious. I have set up a new company, using the default general ledger set on a CASH basis. When I add a new supplier i tick "Inclusive Tax" and then enter the expense code.

    The items being sold are being sold with a GST code.

    However, when I run the GST Summary report, the "Less GST Inputs" is zero, so I assume the GST paid has either ended up in the wrong account or I have not told it where it should be.

    I look forward to hearing from you. Thanks in advance.
  • COBS Tech Support
    Posts: 662
    Joined: Fri Sep 09, 2005 8:23 am

    by COBS Tech Support » Mon Mar 05, 2018 3:05 pm

    To begin with, in the Customise area, under Install Settings|Taxes, is:

    "Tax Recording Type" set to "detailed" ?

    Next to "GST Inputs Clearing Account", does the code assigned make sense and correspond to an account that has been set-up in your general ledger?
  • JeffG
    Posts: 91
    Joined: Sat Aug 31, 2013 6:50 pm
    Location: Sydney

    by JeffG » Wed Mar 07, 2018 7:38 am

    Thanks - account codes weren't set. Not sure why they didn't copy across from previous company. Do I now have to go back and edit each transaction for last quarter to get the GST where it should be? Cheers
  • JeffG
    Posts: 91
    Joined: Sat Aug 31, 2013 6:50 pm
    Location: Sydney

    by JeffG » Wed Mar 07, 2018 8:29 am

    Ok, fixed historical transaction question. However, my book keeper tells me that when she used to enter a supplier transaction directly eg fuel, in the Transaction Allocation dialogue box, she used to only enter the dollar amount in the Amount box and the system would then add the item value without GST and automatically add the GST line.

    Now we have to enter the amount on the transaction line and stipulate the tax code. Despite the supplier as being set up as tax inclusive.

    Are we entering it wrong now, or were we entering wrong previously?

    Thanks
  • COBS Tech Support
    Posts: 662
    Joined: Fri Sep 09, 2005 8:23 am

    by COBS Tech Support » Thu Mar 08, 2018 9:31 am

    Neither method is "wrong".

    The method where you enter the GST amount directly is easiest and fastest.

    The method where you need to assign GST codes against expenses, takes a little more time, but it results in far more useful reports for your accountants. Hence the method you are using now is the recommended approach moving forward.

    You can also save time by going into the GL chart of accounts and assigning default tax codes (GST, GSI, FRE, etc.) to commonly expensed accounts. This will save you from having to repeatedly re-enter those codes for each transaction you enter. Making this 2nd approach nearly as fast as the first.

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