Tax transaction

1

Hello there,
We are reporting for GST on cash basis and, during the current reporting session we have received a pre payment that was accounted in “Liabilities” without GST.
In the “Tax Transaction” reprt it shows up in the “Total Sales” column.
We don’t think that it is correct. How can we remove it from the Total Sales?

Regards
Peter

2

Firstly, GST Sales is not the same as P&L Sales.
GST Sales is where GST has been charged and GST Purchases is where GST has been paid.
EG, if you sell a fixed asset, that is a GST sale but not a P&L Sales.

Therefore, receiving a pre-payment is seen as a GST Sale as it was in cash.