Processing GST payable and GST refunds to and from the ATO in IPA Books+

Legacy KB ID: 5425

Question

How do I process my transactions with the ATO for GST in IPA Books+?  Mostly I pay money to the ATO and sometimes I get a refund.

Answer

GST that you collect and pay is assigned to the GST Payable sub-accounts.  These accounts cannot be accessed from the Make Payment option under Day-to-Day.

You need to process your payments to the ATO for your GST from a General Journal, or through a Bank Transfer option.

 

To process a Journal transaction for your net GST Payable to the ATO

  1. Advisor > Journal

  2. Debit the GST Payable – GST collected account for the amounts you collected through your Sales

  3. Credit the GST Payable – GST Paid account for the amounts of GST you paid in your Purchases;

  4. Credit your bank account for the difference between GST Collected and GST Paid.

 

To process a Journal transaction for your GST Refund from the ATO

  1. Advisor > Journal;

  2. Debit the GST Payable – GST collected account for the amounts you collected through your Sales;

  3. Credit the GST Payable – GST Paid account for the amounts of GST you paid in your Purchases (this amount is greater than GST Collected);

  4. Debit your bank account for the difference between GST Collected and GST Paid – the amount of the refund from the ATO.

 

Alternative to a Journal entry

The exact steps you take will depend on how you track your GST collected and paid and how you wish to process payments to and from the ATO.  This guide is based on your transactions with the ATO coming from one account – the GST Payable account. 

 

Pay net GST payable to the ATO

  1. Create a new transfer transaction (Banking > Transfer money > Add);

  2. Specify the date of the payment;

  3. Specify the payment amount (GST Collected less GST Paid);

  4. Enable the option Show all accounts (not just bank accounts);

  5. Specify the bank account you are using in the Transfer from field (i.e. the bank account from which the payment to the ATO will be made);

  6. Specify the GST liability account (eg: GST Payable) in the Transfer to field;

  7. Add any relevant description information that you want to associate to this transaction for your record keeping purposes;

  8. Save the transaction.

 

To receive a refund on GST from the ATO

  1. Create a new transfer transaction (Banking > Transfer money > Add);

  2. Specify the date of the payment;

  3. Specify the payment amount (GST Collected less GST Paid);

  4. Enable the option Show all accounts (not just bank accounts);

  5. Specify the GST liability account (eg: GST Payable) you are using in the Transfer from field;

  6. Specify the bank account in the Transfer To field(i.e. the bank account which will receive the refund from the ATO);

  7. Add any relevant description information that you want to associate to this transaction for your record keeping purposes;

  8. Save the transaction.

 

Additional Information

This guide covers transactions with the ATO for the GST component only.  If the payment will include liabilities for other components of the BAS Lodgement, like PAYGW, PAYGI, FBT, etc, you will require the use of other expense accounts.  For the transfer method you may require a separate clearing account to mix the various components into one payment to the ATO.

 

Need more help?

Ask the Reckon Community at: https://www.reckon.com/au/support/one/.

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