I know this sounds like a really dumb question but I’m finding that the figure shown at G11 (Non Capital Purchases Including GST) seems to be considerably higher than my actual purchases for the month.
I’m working on a cash basis (if that makes any difference but is there something that I’m missing or not fully understanding ?
Is there any way that I can double check the items that the G11 figure is made up from ?
Hoping that you can understand my ramblings and, as always, I look forward to hearing back soon.
Because you are on cash basis this distortion may appear because of lag.
Lets say last month you purchased 20,000 but only paid 5,000 within the month, therefore under cash basis your G11 is 5,000. This month you purchased another 12,000 but paid the 15,000 outstanding from last month plus 7,000 from this month so the cash basis at G11 is 22,000 compared to the month’s purchases of 12,000.
Create / print off the various tax reports and should see / reconcile the G11 tax trails