The GST calculation worksheet shows G10 (Capital purchases) and G11 (Non capital purchases) How does manager allocate these expenses? The only expense in the file are on the expense side, no capital items, but nearly half have been allocated to G10 (Capital Expenses) in the BAS worksheet.
Generally, items being charged to BS Asset accounts should go to G10 and items being charged to P&L Expense accounts should go to G11.
Can you trace if it’s particular expense accounts which have gone to G10 ?
Perhaps you could show screenshots illustrating a G10 transactions path.
Thank you Brucanna for looking at this - I have examined the accounts and the transactions in detail.
The GST calculation worksheet is the document that seems incorrect - all the other GST reports are correct.
The GST payment figure on the worksheet is correct, however it has capital purchases, yet there are no capital purchases, it also has purchases for making input taxed sales. Bank charges are the only account with input taxed amounts, which are not large, but the worksheet reports $42,165 at G13, The capital purchases are shown as $41,888 although there are none in the transactions I have checked all expense accounts, and they are all grouped under expenses, none under assets.The net result is that G16 is correct. I don’t know how to attach a document for you to see how this works, but it would seem that the GST calculation worksheet may have some errors.
Kind regards
If you’re using windows use snipping tool and upload the images.
Thanks - The BAS worksheet shows capital purchases and input taxed sales, which don’t exist in the transactions, These balance out, and the GST result is correct, and agrees with the other GST reports in Manager. The only capital account is Cash at bank, which doesn’t have a GST code.
Do you purchase and sell inventory ?
No, there are no inventory items.
Can you show a screenshot of your Settings > Chart of Accounts listing, thanks.
@Outback246 have a look at Tax Audit report for the same period. It breaks down usage of tax code by account. This would show you which tax codes have been allocated to P&L and which to B/S accounts.
There are some exceptions. For example, purchasing inventory (even though it debits B/S account) will be considered as non-capital purchase for GST purposes.
You have transactions of $41,888 under Bank account account decorated with tax code Input Taxed… this is incorrect. Do not use any tax code when debiting asset account which represents bank balance.
The issue seems to be around your Sales transactions
Your G10 figure of 41888 matches the Sales figures 41227 + 661
Your G13 figure of 42165 matches the Input Taxed column total 42165 which should only be 276.81
The Bank account amount under the Input Taxed column matches the G10 / Sales figures - 41888.
So the question arises, how have you been entering those Sales transactions ?
Problem solved, thank you.
The entries are all in journals, balanced to the bank account.
One bank account entry had an input taxed GST code, another one had a no GST code.
Once all the GST codes were removed from the bank entries, problem solved.
Thanks everyone for such great support - it is great to have, and to know we don’t give up until the problem is solved.
Can I ask why ? Generally Journals are used for non-monetary adjustments , not sales nor balancing to the bank account.