Beginner user here, trying the software and so far it is quite impressive. Thank you for your hard work.
Just setting up the desktop version for a cash-based company. I think I’ve followed the right setup for a new company to account for GST, including:
Setup company, chart of accounts, Import AUS locale settings, which include the 10% GST tax code, the starting balance
Setup the GST Payable liability account, and the starting balance
Created an invoice for account receivable with 10% GST tax code
Realised I have to link the tax code to the GST Payable account, so I linked them
This morning when I created a receipt for the invoice, the GST received did not come up in the GST Payable. I made sure the receipt has GST in the column so tax is already inclusive.
Tax codes should be applied on the sales invoice, not the receipt. The sales invoice records the taxable event. The receipt records incoming cash to discharge the obligation the customer owes you. That is not taxable. The only time a tax code is applied to a line item on a receipt is when you bypass the sales invoice and record a direct cash sale.
It also is not clear what you mean by a “cash-based company.” Do you mean you are accounting on a cash basis rather than accrual? Or that you are settling transactions in cash rather than bank transactions?
To answer your question, the accounting is on cash basis rather than accural.
So from your paragraph
I should see the GST Payable recording additional GST when I created the invoice, but yet it didn’t. Maybe because I haven’t linked the accounts in the tax code when I created the invoice.
For cash-basis accounting, neither the receivable nor the tax payable shows up until you record the receipt against the sales invoice. Then the tax payable appears.
You should not have to. Just verify that the tax code is linked to the proper tax liability account, the sales invoice has the tax code applied, and the receipt is posted to Accounts receivable > Customer > Invoice # with no tax code.
You have not shown any dates. Check the dates set for the Summary page (click the Edit button at the top). Make sure all transactions fall within the range.
Also, it looks like you have a start date set. Why? Are you migrating to Manager from another accounting system? If not, don’t set a start date or any starting balances.
OK, I checked the date is within the range of reporting. I started using the software 21st Jul, the invoice in question is dated 1st Jul 2020, (backdated because I’ve issued the invoice before I started using the software), and the receipt is dated 22nd Jul.
Summery edit page is showing from 1st Jul up to today.
Yes, this isa running company with starting balances, although I wasn’t using any accounting system before because I wasn’t really trading on the company.
Also, I noticed the GST calculation worksheet is also showing 0 for the period. It is as though it hasn’t recorded anything against GST that was setup.
Manager ignores transactions prior to the start date. If you had an unpaid invoice as of the start date, it should have been entered according to the Guide on starting balances for customers. It is used only to set the receivable balance for the customer.
@Tut
That would be the issue. So I guess my first GST calculation worksheet should be the output of the report plus plus the information before I start using Manager?
Answering that question requires information you have not shared. Basically, you need continuity of reporting. One wonders, given what you have said, why you chose the start date you did.
Set the start date to the start of the financial year 1 Jul 2020 and enter all transactions after that time.
If you want more history in Manager set the start date earlier and enter more history.
Reports should work for times after the start date where you have entered the data
