GST inclusive profit and loss

I have a client that wants to report gst inclusive amounts in the profit and loss and below the net profit line, minus the gst.

Just checking if this can be done otherwise will look at exporting to excel and manipulate data to match.

Technically speaking, even if it’s not permissible under accounting standards, I do not have an issue with this and wouldn’t be too hard to implement.

Right now it’s not possible. And this hasn’t been requested before as a feature.

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Thanks @lubos - just thought anyone had a workaround, but I do understand that it has not been requested as a feature…if its not too much to ask, I do hope it can be added as an option.

Thanks

I’ve been trying to get the same concept - a report that shows p/l before and after tax (GST) - in my case for a particular Project.
Alas, no one seems willing to assist unfortunately.

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I think it is not because people are not willing to assist but as posted by @Lubos:

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Then why do you consider making it possible? VAT doesn’t affect P&L. If you make it possible nonetheless I guess there will numerous posts about the P&L not being correct from people with little notice about accounting.

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I’m curious to know why would anyone need such report, because I fail to see the practical need for such report.

Maybe because GST affects cash flows? But then again there’s a separate report for cash flows.

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More of a disclosure note requested by Company Directors for comparative purposes, they have been using that method of reporting to back out GST below the line for years until migrated to manager. I am currently doing that manually by using tax reporting to extract GST component of sales and expenses and still reconcile to normal p&l.

cheers

This is already in ideas, so discussion aren’t very useful, however, I will say this: sometimes people tend to do things wrong. For example:

Which means two things:

  1. Every line item is not meaningful and depends on the last line for correction.
  2. The GST line at the end may or may not related to the P&L. For example, you bought assets that contain GST, how would that component of GST relates to the figures on top of it?

Mmm, I thought that putting it in the ideas category actually would open it up for more in-depth discussion so possible solutions could be considered. Otherwise I would advise to immediately close each topic in ideas.

Not entirely true, Manager has a tax audit report that separate out gst by category. Again, this is a disclosure note to the accounts that the Directors requested to be prepared, it will be prepared with or without the feature being implemented, even if it does not make sense to you.

Thanks

Agree that discussions of ideas is a necessary step to ensure features does add value to the users. In this case, the developer confirmed that it is not too hard to implement and this request could be a report that clearly labels it ‘GST inclusive Profit and Loss’ and if it does not impede on any current functionality, then I would support it, obviously I am biased.

@PFIVE Similar to other contributors to this thread I am interested to know further details of when and why you would want the GST component of transactions to appear separately in the P&L, as it is difficult to decipher from the posts you have made so far.

There are good reasons why, for most transactions, the GST component is not included in the P&L statement.

For sales, the reason is that the GST is levied on behalf of the government and as such is government income and is not income of the business. It is directed to the balance sheet as a liability as these funds are held on trust for the government.

For purchases, for most transactions, the business will claim a reimbursement of the GST component, and so this also is directed to the balance sheet, in this case as an asset.

In some instances the GST component on purchases cannot be claimed, such as:

  • The business is not registered for GST (income below threshold).
  • Some or all of the transactions for the business are input taxed, and of course
  • The end consumer.

In these instances the GST component is included in the P&L as part of the cost of a good or services, and in these instances it could be argued that the GST component be separated out and shown as a separate expense in the P&L of GST paid.

These are some of the reasons why I ask that you explain in detail the need for your request.

If it is to include as a note for disclosure purposes the information can be obtained from the inbuilt “Tax Summary Report”.

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Yes, it may look similar at first, but Tax Audit actually serves a purpose and that is to identify problematic areas like taxes claimed on drawings or staff welfare or a sale of an exempt account assigned a tax.

That said, I still fail to see the purpose of the Profit & Loss inclusive of tax. Absent any tangible use, this report seems like going out of its way to achieve nothing.

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@PFIVE has not explained who, exactly, these “Directors” are or what precisely the relationship is with them. But it seems legitimate to consider a professional’s duty to educate management personnel on the real meaning and proper interpretation of standard financial statements. Blind acquiescence to unjustified requests merely to perpetuate longstanding distortions of accounting practices isn’t a valid reason to incorporate improper procedures into a publicly distributed program. But so far that’s all we’ve been given, despite multiple requests.

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Agreed… and well said @Tut

@AJD thanks, note that I am well aware of the GST requirements and reporting. The client was using excel to report which I have convinced to move into Manager. After all the education and learning provided, he’s asked that I include as disclosure an inclusive report which he is using to run in parallel to confirm Manager is what he’s expecting and cash reporting.

As mentioned in my earlier post, I am using a work around ‘already’ using tax reporting, but was wondering if this can be a tick box that I can use since I cannot access the database to write a report into excel.

Bottom line, I am required by the client to add this report as a note to the account for his own use which I am already doing that at the moment.