GST - NZ - Which is correct

Hi there,

Just wondering why I might have 2 different GST calcs in summary,(See screenshots) totally unsure how this may have happened. But which one is the correct one or perhaps they are both correct. The final answer is that both show the correct amount of GST payable/refund. Hope this makes sebse. But Im sure when you look at screnshots you will understand my query. Using windows 10 and the latest Manager download.

Many thanks
Grandpa
Screenshot - 01-Jan-21

Screenshot_02 - 01-Jan-21|633x58

Better screenshot

Screenshot - 01-Jan-21

Unfortunately, your description does not make sense. First, it isn’t entirely clear what your first screen shot is showing, because you have not shown enough of your Summary to know where it is from. Second, if these are two tax liability accounts, that means you created them both. And the fact that you have balances in both means that you have at least one tax code assigned to each and that you have used both those tax codes at least once. Whether either is correct is unknowable without access to your entire sales and purchase history, as well as your Tax Codes page under Settings. Third, your second screen shot adds to the confusion, because it shows only one account that is apparently a tax liability account.

I’m guessing, but I suspect what you have done is create two tax liability accounts when you should have only one. And you have created two GST tax codes with identical or similar names so you cannot tell them apart when entering transactions.

Hi,

Many thanks for your reply. Im not sure what Ive done but up until now the summary has shown the net GST liability,

[quote=“Tut, post:3, topic:32299”]
I’m guessing, but I suspect what you have done is create two tax liability accounts when you should have only one. And you have created two GST tax codes with identical or similar names so you cannot tell them apart when entering transactions.
[/quote] I think this may be likely, so will have a closer look. many thanks for your help.
Cheers
Grandpa

Please post screen shots for

  • Settings -> Tax codes
  • The edit screen for each of the tax codes (Highlight / select the pale GUID in the top right corner to make it easier to read).

@Patch
Hope this is what you are looking for.

Cheers
Grandpa

Could you also show the screen one level up which shows all your tax codes.

It looks like you have imported the standard localization settings for New Zealand, including the tax codes. But there will be more than you have shown. Your GST 0% code shows no assigned tax liability account because it is a 0% code and results in no tax amounts to be posted anywhere. Your GST 15% code is being posted to an account you created named GST Payable. Somewhere, you have a custom tax code being posted to an account named G.S.T., which you also created. This could be the standard GST 15% on imports tax code or some other tax code you created on your own.

Presumably, you have no need for the two tax liability accounts, since both would be settled with the same authority. Choose one of them to keep. Change all NZ tax codes (except the 0% ones) to that account. Then delete the other account.

Hi Tut & @Patch

Many thanks for your help. Originally my Manager was set up for GST according to instruction in guides. Now that localization have been updated it also includes an account called GST payable plus a drop down menu to select another liability account, which I didn’t realize. If I chang the liability account from GST payable to the “old” GST account, then the GST shows in the summary sceern as one amount he amount payable/refund. Not sure whether I should use the latest localization or leave the “old” way.(Hope all this makes sense)

Anyway thank you for your help. What a great piece of accounting software.
Look forward to any reply.

Kind regards
Grandpa

Use the latest localization, because any built-in reports will only look at the expected accounts. GST payable is the account automatically set up and assigned as the tax liability account for the NZ tax codes.

Recovering from what you have done may be tricky, depending on what you named the old tax codes you have assigned to G.S.T. If you named one GST 15%, for example, you will not be able to easily differentiate transactions to which it was applied from those where the localization tax code of the same name were applied. You will have to resort to Batch Update, where you will be able to distinguish them by the UUIDs for the tax codes. Or, you could rename that old tax code as a first step.

Regardless, you need to switch every transaction to which the old tax code was applied to the localized tax code. Then you will be able to delete the G.S.T tax liability account.

Hi Tut,

Hopefully I’m understanding this correctly. As far as I can recal I only used the tax codes as in, Settings >Tax codes. The other problem maybe, that I’m unsure what should be showing in the Summary screen for GST, What in fact is showing may well be correct. As GST payable less GST(rec’d) the difference is the correct amount.(if that makes sense)
Thank you so much for all your help.

Kind regards
Grandpa

If the difference between those two accounts is your correct liability, then fixing the transactions that currently have the wrong code—and therefore are being posted to the wrong account—will resolve all your problems.

The basic presumption in Manager’s tax functionality is that purchases and sales with offsetting taxes will be posted to the same account. Thus, that account will tell what you owe the authority (or they owe you).

That is why I wanted to see the screen showing all of your tax codes and how many times each has been used. It is likely you have duplicate tax codes for the same function. For the localisations to give you correct information you will need to find and recode transactions using the old tax codes. To know which ones are the new ones picked up by report transformations you will need to look at the GUID (which is why I wanted you to highlight it).

It is likely you will still need to do this

1 Like

Hi

Hopefuly this is what you are refering to ( I’m pretty hopeless at some of these things.

Many thanks for your help.

Cheers
Grandpa

That is what @Patch asked for. But it makes things more confusing. This shows that you have only the four standard NZ localized tax codes. You have made two of them inactive, which has no bearing on anything that has been discussed.

The problem is that your first screen shot showed an account named G.S.T with a balance of 2,272. So the question is, what is that account? Your GST 15% tax code—the only one that has been used—is not assigned to that account, at least not currently.

What you need to do now is drill down on that 2,272 balance and show what contributes to it. Drill all the way down to the Edit screens of whatever transactions are there to see where this number comes from.

GST Adjustment / GST 15% on Imports is normally a 100% tax rate code.
If it has not been used, on the Settings -> Tax code screen the transactions column shows a dash “-”
On your screen shot I can see neither a dash or a number of transactions.
What account does your GST Adjustment / GST 15% on Imports tax code use.

Edit
On further testing Manager replaces the dash with a blank if the tax code has not been used and is inactive. Which means you do not have a duplicate tax code problem or tax codes using a mixture or accounts.

So you will need to use the drill down @Tut describes is likely to answer the question.

@Tut @Patch

Hi guys,

Many thanks all sorted. Drilled down, only about 20 entries to “transfer” to GST payable a/c. All seems fine now.

Again many thanks.

Cheers
Grandpa