I entered it like this
this is the purchases price from over seas with no GST
this is the freight/customs form I entered
this is the GST return
so when I go into the profit and loss the first entry does not show up in purchases
have I done it right?
I entered it like this
Does anyone know how to do overseas and custom transactions?
It is impossible to answer your questions without knowing:
- What type(s) of forms you are showing (are they purchase invoices?)
- The accounts to which line items on the various forms were posted (show the Edit screens)
- What the different line items are for
- What the relationship between the forms is
I am also curious why you have everything labeled as DEBIT DEBIT. Purchase invoices (if that’s what you are showing) create accounts payable, which are liabilities.
You need to furnish more information about this, too. What do you mean by “first entry?” Doesn’t show up where? And what are you referring to by “in purchases?” What you are showing is from a Tax Summary, which is not a GST return. What do you expect to show that does not? Illustrate with screen shots. It is impossible to conclude anything about the transactions in your other screen shots, because they are buried in summary figures along with other transactions.
Basically, you need to describe your scenario further.
Here is the edit screen shot have taken bank account details out this is the amount of the actual purchase it came from the bankstatment I imported
this is the freight companys invoice entered they pay customs the GST and charge us. I have taken bank account out and it is from the bankstatment I have imported
What you are showing is from a Tax Summary, which is not a GST return.
No its not a gst return its a tax summary and that is the only tax thats used for me in manager so my bad I should of been more specific for you
so it now looks like this “The Tax summary”
any way I did an update of Manager and it is all good the purchase of 3,202.48 is showing in the P&L and everything is where it should be except for in the “Tax Summary” under Total Purchases it also lists the customs GST of 246.90 and it shouldn’t I just deduct it when I do the actual GST return with IRD because its not a purchase
Thanks for the additional information. Your situation is now clear.
Why do you think it should not show this? On the Tax Summary, the Total Purchases column is the sum of Net Purchases and Tax Paid. In the case of the line item for the import GST, the entire amount of the line item is tax paid. If GST had been paid immediately upon purchase on the 3202.48, you would have combined the last two lines on the Tax Summary, for Total Purchases of 3449.38.
But I have a further question. Why is the GST on the 17/07/2018 payment only 246.90? If GST is 15%, it should be 320.25 on the 3202.48 purchase.
Another thing to note, in your case, is that the New Zealand GST 15% on imports actually performs no calculations. It is just a label. What it actually does is apply 100% of the line item amount to Tax payable.
Lastly, you should check New Zealand law. I am not personally familiar with requirements in your jurisdiction. But in some locations, no tax code should be applied to the original purchase of imported goods. (Australia is one of those places.) The GST Exempt code may not be for imports, on which tax is paid to someone other than the supplier, but for goods or services that are actually exempt from taxation at any time. New Zealand also has a 0% built-in tax code. It is important to understand which designation is legally required in every situation, based on what is being purchased, who is purchasing, and where it is purchased from.
I am not sure customs work it out
Oh gosh there never used to be a 0% when I first created this clients file have amended Thanks
but that still does not explain why the 15% on imports is adding into the total purchases. I know how it got there because it was put in as a payment which it was(off an invoice) and as I said I just take that amount off the total purchases.so total purchases would become 44363.45 but it is a bit confusing if I have to send Tax Summary to a client.
I think you are just being confused by terminology. The 246.90 does not appear anywhere as a purchase. It is not in the Net Purchases column of the tax summary. If you drill down on the Freight expense account, it will not be there.
The only account in the chart of accounts where it appears is the Tax payable liability account, reducing the amount the business owes to the tax authority (because it paid that amount via the payment). The fact that it is in the Total Purchases column of the Tax Summary does not mean it was a purchase. That only means is was part of the total amount paid as part of a purchase transaction.
As for the 0% tax code, don’t rush to use it without verifying that it is appropriate for the circumstances. In most taxation schemes, there is a distinct legal difference between being taxed at a 0% rate and being exempt from taxation. This often has to do with reporting of total revenue, turnover, or other things and often plays into calculation of income tax or special tax incentives. While the accounting effect might seem to be the same, other considerations can be important.
It appears in the tax summary as a purchase. in the total purchases
and I know the tax rules I am a tax accountant just dont know manager as well as I should. I didnt want to ask for another tax code more important things for them to do so I just worked around it
So can anybody tell me why the import GST amount is in the Tax summary under total purchases.We put in the total purchases in our GST return
GST on imports is added to purchases because it represents the GST portion of the imported goods. In the GST return, it is treated as pure GST to be claimed, unlike local purchases that are entered as GST inclusive purchases.
But it is in the Tax paid portion of the tax summary (see above screen shot) so it does not need to be in total purchases as well
I am not sure how you report GST in NZ. In Australia it would form part of the GST inclusive purchase price and show separately as GST paid as the amount to claim. You can set up a sample business and test a few import transactions to ensure your set up results in the correct purchases figure and GST to be claimed.
Thats the part I can not get my head around why is it part of the inclusive purchases total as its not a purchase
you are not purchasing the gst
It’s just terminology. Think of it as the same as “Total Transactions”. But it has to be distinguished from total sales somehow. Therefore, “Total Purchases.”
Ok sort of:pensive: thanks but I will still white it out and change the total when giving to a client as they question me and say its not a purchase on the tax summary sheet that is. I know it does not affect the P&L and I know its entered right it just looks incorrect on the tax summery
Thanks for everybodys input much appreciate to help me understand that A) I have entered it right B) it does not affect the P&L
From a local business you buy for 100 and pay 15% at the time - so total purchase is 115.
From a overseas business you buy for 100 and pay 15% separately - so total purchase is 115
Just because you pay the GST differently doesn’t mean you can change the reporting.
Then you have given the client a misleading report - they will be incorrectly reporting.