DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

PAYG Clearing

#1

Not Sure if I have entered this right in the software, in regards to my BAS Report & Payment to the ATO?

I have used the GST Report & have entered the GST payment under Tax Payable (which is correct from reading the guide). The problem is with the PAYG liability that is paid every quarter.

Both of these payment come from my GST/PAYG Account.
GST payment is credited to the systems Tax Payable Liability. This is working correctly!

PAYG payment is credited to PAYG Liabilities (I created that Account under Liabilities).
I then created a Journal Entry that debits the Account PAYG Liabilities for the amount.
This zeros the Account PAYG Liabilities, however the same value has been transferred to Suspense in the Equity Account.

What am I doing wrong?

#2

Why exactly are you creating a journal entry? Is this to record an actual payment of PAYG?

#3

Lubos,

Yes it was for a payment;

3094 was for the PAYG quarter payment & 491 was the GST for the current month…

BAS-payment.jpg1588x662 55.7 KB

#4

Sorry, the journal did not load. Have attached now.

Journal PAYG payment.jpg1429x607 40.3 KB

#5

Delete that journal entry. It makes no sense. You are already clearing PAYG liability balance by that payment entry.

#6

If I delete the journal entry the liabilities account will be out (see attached).
Should I create an Expanse account as PAYG Paid (not really a business expanse)?
That would get rid of the problem. I guess & will cross reference the amount paid to the ATO.
All I would need to do is manually add the amount back when working my income at Tax time.
I love the software, works a bit different to MYOB, but I am getting my head around it!

Liabilities out of balance.jpg778x414 30.3 KB

#7

Can you show screenshot of your Payslip items under Settings tab? It looks like your payg liability account is not linked with payroll.

#8

Lubos,
This is not a payment from staff wages. That all working fine, including the Super Contributions! I have no problem with that side.
The payment is for myself as the Small Business owner, every quarter I must pay whatever % is deem by the ATO for the current financial year. This year is 16.5% of the income for each quarter. or the option of paying a set amount that has been worked out by the ATO per quarter (based on the income of the previous year).

The way it worked in MYOB, was to journal a debit (worked out for the quarter owing) to the liability account & then make a payment from the cheque account to zero out the liability.

#9

I see. Then you can make a journal entry but you need to debit some account too so journal entry is balanced. This would be the same under MYOB (or any accounting system).

So when making a journal entry, credit PAYG liability as you did and debit Owner's equity by the same amount assuming you are a sole trader.

#10

Lubos,

OK the concept is kind of similar to MYOB, however when I journal a Credit to PAYG & debit Owners Equity.
The fees is zeroed out of Liabilities (as expected), but now the figure appears in the Suspense Account & not in Owners Equity.

Suspense.jpg770x499 35.2 KB

#11

Can you show again how did you enter that journal entry (with Owner's equity account) ?

#12

Lubos,
Journal entry attached.

Journal Entry.jpg1591x622 57.1 KB

#13

You have not selected the necessary subaccount under owner’s equity. I don’t know how your chart of accounts is set up, but you must first create those subaccounts if you have not. Then you must choose one. If you do not, Manager does not know whose account to allocate the transaction to. Rather than lose it, Manager places it into Suspense.

#14

Tut,
Thanks for that, I have created an Equity Account for Owners PAYG Payments that has fixed the issue.
I had previously used MYOB for around 10 years, having originally starting with a set of books that matched my business.
Using the generic template, all of the accounts etc. were preset & everything just when were it should straight out of the box. I recently upgrade my computer & my old MYOB would not load due to the new operating system.
I was about to upgrade my MYOB when a friend put me onto Manager. Pretty happy with the decision to use the software. Once you get your head around the setup it great, not to mention the great forum support. Way better then the support I received from MYOB.

Also, do you know if their is a way to get a bank account reconciliation report out of Manager, similar to MYOB?

#15

Reconciliation process is explained in the Guides at http://guides.manager.io/businesses/bank-accounts/bank-reconciliation. Other users have asked about a reconciliation report, even mentioning MYOB. I am not personally familiar with that program, but the report as described by others seemed fairly useless to me. I view reconciliation as a double-check to confirm accuracy of records. Once the records are known to be accurate, with any necessary corrections, I see no purpose in a report that summarizes the accuracy of the records.

Anyway, there is no such report in Manager. But you can view and export account registers and create any data presentation you want.

Many such requests seem like throwbacks to old, manual accounting practices, where our arithmetic was suspect. One of Manager’s benefits is the convenient drill-down feature on almost every balance anywhere in the application, so we can quickly track down inconsistencies.

#16

I think bank reconciliation report is still useful. It explains difference between balance as per balance sheet and balance as per bank statement.

I’m planning to add this report in January.

#17

Lubos,

That would be great if you could do that, as it is required for our Accountant. It is available in all other commonly used accounting packages down here in OZ, like MYOB & Quick Books. I am pretty sure this feature was available 20 years ago when I used invoices in Word document format & Microsoft Money for my business accounting.