Hi,
I was wondering if there is a way to subtract the amount of GST I pay quarterly from “GST Payable” in Liabilities.
If so, how do I create one/do so? Do I Create a ‘New Account’ in my Charts of Accounts under Equity?
In other words, I want to import all paid BAS statements. Because the "GST Payable’ shows the total amount owing and does not reflect the quarterly amount I need to submit.
Thank You
Every time you make a payment of GST to your tax authority, complete a payment form. For the posting account, select GST payable. This action will reduce your liability by the amount of the payment. If you do this every filing period (and assuming there were no other taxable transactions between the end of your filing period and payment date) this would reduce the balance of the liability account to zero every quarter.
Perfect. Thank you. That worked 
What about PAYG. What’s the best way to import that into manager? I pay a certain amount of tax every quarter (PAYG) but not sure how to add it into the software.
Not aware of anything in Manager called a “payment form”.
Similar to the GST, but for the posting account, select PAYG payable.
Technically, since it used for both receipts and payments, the form is named receipt-or-payment-form:
Hi Tut,
If in my Charts of Accounts, I create PAGY payable under Liabilities & complete a payment form as I did with GST. It shows up as negative value.
I believe I’m not this right?
Is the PAYG supposed to come out of the retained earning which is the same as my Net profit?
If so, How do i set it up to do so.
Thank You
and another question,
I just realised when I create my BAS statement to see how much GST I need to pay. Manager uses the Due date of the invoice and not the date the funds hit/clear into my account.
So If I Invoiced someone on the 10/12/2020 and I get paid lets say 10/1/2021. The GST on this invoice should be in Quarter from Jan-March. But when I generate the report for the period of Oct-Dec. I see this GST amount.
Is there a way to fix this? to show the GST for the period the amounts are cleared rather when the invoice was due?
Thank you
When you submit your tax returns to the ATO you must specify if it is done on the basis of cash or accrual based accounting. To work out which is best for you I suggest you discuss it with your accountant.
In manager you must then set cash or accrual based accounting depending on the results of the above discussions.
After which Manager will the report income and liabilities consistent with your chosen accounting convention.
Your question cannot be answered without seeing screen shots of the Edit screen of the payment and your chart of accounts.
That depends on what you mean by “supposed to come out.” Are you saying it does and you wonder whether that is correct behavior? Or are you saying you think it should and it isn’t? Either way, you need to show the screens shots mentioned above.
Oh perfect.
When I set it to cash based it does exactly what I want it to do.
Thank you
Hi Tut,
I have attached the screen shots.
This is how my business account is set up.
When I enter the PAYG amount, it shows up as s negative value and my cash at bank decreases by the same amount I have entered
Two responses, @AJ2021:
Your payment is marked as having cleared the bank almost three weeks before you made it. That cannot be correct.
The payment credited your bank account and debited your GST Payable account. Since liability accounts are credit accounts, if you had no liability recorded yet in that account, the debit would move its balance into negative territory. That means the tax authority owes you money, because you have paid a liability you did not owe.
That is because your PAYG account didn’t have any liability amount to be paid in the first place.
So in effect your payment is paying a PAYG amount in advance of a liability occurring.
The liability normally occurs after the creation of a payslip but your screenshots doesn’t show the Employee / Payslips tabs being activated nor is there any P&L Wages expense account.
So the question is, why are you paying PAYG when you aren’t paying Wages ?
If you are paying the quarterly PAYG Instalment which is based upon your personnel tax, then the payment should be allocated to Retained Earning, not PAYG Payable.
