Hi,
I have noticed that for some weird reason if I add all taxable expenses contained in the P&L and cross check that with the non capital expenditure in the ATO BAS, there is a discrepancy of a few thousand dollars.
(This is after considering payroll etc)
What reasons would cause a discrepancy between these reports, apart from the inclusion / exclusion of GST on the BAS report?
Are you comparing like periods - is the P&L period the same as the BAS period ?
Hi,
It’s definitely the correct period.
I think there is something funky going on with amounts that are ‘refunded’.
Certainly some kind of programming issue in the way the report is pulling the information.
If you mean refunded from the tax authority, then yes as these shouldn’t be any where near the P&L.
If not, then you need to expand upon your reference to “refunded” further.
Hi there Brucanna,
Actually I am referring to money received into expense accounts (ie. if you purchase something and then it is refunded back).
Here is an example:
Operating Expenses:
Take out $78,174.09 for Wages in that period because it is not relevant for the purposes of BAS Expense
Cost of Sales:
BAS Report:
Figures are completely different:
Total expenditure is $72, 728 in BAS report (excluding GST)
There is a discrepancy and it’s not clear why
@lubos Would you have any further insight here?
Have a look at Tax Audit report. It will show how tax codes have been allocated across transactions by account.
Tax Audit report will reconcile to P&L and ultimately to your BAS.
I have done this and there is still a gap of between the total expenses in the P&L ($69k~) and the BAS Report ($74~)
I don’t know how it would be possible for the BAS report to show a higher amount when every single transaction is coded correctly and the GST component on expenses is only $1740/
Something funky is going on, can I send the file for further review by any chance?
I’d like to update the BAS ASAP.
What was the amount of the refunds received back into expenses - would it be approx. $5k.
So far you have shown purchases, what about sales - does that side reconcile.
Refunds can be added to the sales side as they are receipts of GST even though they are reversed expenses. In that case the BAS would be showing the gross expenses (payments) not the nett expenses (payments - refunds)
NOTE : BAS is about the Receipts and Payments of GST, not about the Income & Expenses of the business.
Hi, the amount received back into expense accounts is less than $1,000
@mattyh, view Tax Audit report again and see total under GST 10% column.
Divide total by 11 and you will get GST amount payable (or refundable). This amount will equal to your figure on BAS (there will be minor difference due to rounding)
Manager has quite complicated algorithm to decide which debits are truly purchases and which debits should just offset sales. Maybe there should be report for this too.
But the bottom line is, your GST payable (or refundable) amount is the most important thing on your BAS so if that’s correct, then you should just lodge it and assume Manager got it right. If it didn’t (which I doubt), it would have no impact on your GST payable (or refundable).
