Difference between revisions of "Alternate Australian GST setup"

From GnuCash
Jump to: navigation, search
(note about moving to 3-account system)
(Category:AU, GST/VAT)
 
(4 intermediate revisions by 3 users not shown)
Line 14: Line 14:
 
At the end of each accounting period if you owe the government money then you record the amount you paid it in '''Liabilities:GST:Paid'''.  Or if the government owes you money then the amount you receive should be recorded in '''Liabilities:GST:Collected'''.
 
At the end of each accounting period if you owe the government money then you record the amount you paid it in '''Liabilities:GST:Paid'''.  Or if the government owes you money then the amount you receive should be recorded in '''Liabilities:GST:Collected'''.
  
−
This simple scheme can easily be modified to be the same as the 3-account system.  in this scheme '''Liabilities:GST:Paid''' is exactly the same as in the 3-account system, but '''Liabilities:GST:Collected''' is given the rather confusing name of '''Liabilities:GST:Payable'''.  To move to the 3-account system all you need to do is create a new account called:  
+
This simple scheme can easily be modified to be the same as the 3-account system.  In this scheme '''Liabilities:GST:Paid''' is exactly the same as in the 3-account system, but '''Liabilities:GST:Collected''' is given the rather confusing name of '''Liabilities:GST:Payable'''.  To move to the 3-account system all you need to do is create a new account called:  
  
 
*'''Liabilities:GST:BAS'''
 
*'''Liabilities:GST:BAS'''
  
 
This is where all of the GST money you pay the government is recorded.  In the 3-account system this account is called '''Liabilities:GST:Payments'''.
 
This is where all of the GST money you pay the government is recorded.  In the 3-account system this account is called '''Liabilities:GST:Payments'''.
 +
----
 +
 +
Another variation of the 3-account setup is to have the BAS payments (or refunds) as separate sub-accounts, rather then entering the transactions directly in the Collected and Paid accounts.
 +
 +
*'''Liabilities'''
 +
**'''GST'''
 +
***'''Sales'''
 +
****'''Collected''' (gst received from sales)
 +
****'''BAS''' (net gst payments to ATO)
 +
***'''Purchases'''
 +
****'''Paid''' (gst paid on purchases)
 +
****'''BAS''' (net gst refunds from ATO)
 +
 +
You are free to change the names to be more explicit if it makes things easier for you :)
 +
 +
*'''Liabilities'''
 +
**'''GST'''
 +
***'''Sales'''
 +
****'''GST Received''' (gst received from sales)
 +
****'''BAS Payments''' (net gst payments to ATO)
 +
***'''Purchases'''
 +
****'''GST Paid''' (gst paid on purchases)
 +
****'''BAS Refunds''' (net gst refunds from ATO)
 +
 +
== Gnucash 2.7 or later ==
 +
 +
The following 3-account structure can be used, and will greatly ease the periodic reporting:
 +
 +
* '''GST''' (placeholder account) (type ASSET/LIABILITY)
 +
** '''GST:Collected''' (from Sales) (type LIABILITY)
 +
** '''GST:Paid''' (from Expenses) (type ASSET)
 +
** '''GST:BAS''' (from periodic BAS) (type ASSET/LIABILITY)
 +
 +
As above, GST collected on Sales and paid on Purchases will be recorded with a split to the above.
 +
 +
Periodically (usually quarterly) the ATO will require reporting of all GSTs collected and paid from business expenses. This can be obtained by running the report '''Income & GST Statement''', which is useful to add GSTs paid and collected, for ATO reporting. This report will obtain source transactions from your business expenses & sales, and will obtain GST splits from the Collected & Paid accounts selected in the Accounts tab.
 +
 +
The GST wholly received/paid to the government can be recorded into '''GST:BAS'''.
 +
 +
{| class="wikitable" style="text-align:center;"
 +
|+"Income & GST Statement" sample report
 +
! Date || Description || Total Sales || Net Sales || GST Sales || Total Purch || Net Purch || GST Purch
 +
|-
 +
| 03/08/17 || Agency || $4000 || $4000 || || $1760 || $1600 || $160
 +
|-
 +
| 03/09/17 || Agency || $5050 || $5000 || $50 || $2200 || $2000 || $200
 +
|-
 +
| 06/09/17 || Marketing || || || || $220 || $200 || $20
 +
|-
 +
| Totals || || $9050 || $9000 || $50 || $4180 || $3800 || $380
 +
|-
 +
|}
 +
 +
GST receivable for this period = $380 - $50 = $330 (to be claimed back from ATO)
 +
 +
Remittance into my bank = $9050 - $4180 = $4870 (what I initially receive into bank)
 +
 +
Income after expenses, relevant to annual income tax = $9000 - $3800 = $5200
 +
 +
[[Category:AU|Alternate Australian GST setup]][[Category:GST/VAT|Alternate Australian GST setup]]

Latest revision as of 15:32, 28 September 2020

The following GST scheme is used by MYOB BussinessBasics.

Since GST is money you owe the government (or visa versa) you create an account called:

  • Liabilities:GST

Then, to make your balance sheet more informative, you create two sub accounts:

  • Liabilities:GST:Collected
  • Liabilities:GST:Paid

Whenever you receive income you record the GST component in Liabilities:GST:Collected and whenever you make a purchase you record the GST component in Liabilities:GST:Paid.

At the end of each accounting period if you owe the government money then you record the amount you paid it in Liabilities:GST:Paid. Or if the government owes you money then the amount you receive should be recorded in Liabilities:GST:Collected.

This simple scheme can easily be modified to be the same as the 3-account system. In this scheme Liabilities:GST:Paid is exactly the same as in the 3-account system, but Liabilities:GST:Collected is given the rather confusing name of Liabilities:GST:Payable. To move to the 3-account system all you need to do is create a new account called:

  • Liabilities:GST:BAS

This is where all of the GST money you pay the government is recorded. In the 3-account system this account is called Liabilities:GST:Payments.

Another variation of the 3-account setup is to have the BAS payments (or refunds) as separate sub-accounts, rather then entering the transactions directly in the Collected and Paid accounts.

  • Liabilities
    • GST
      • Sales
        • Collected (gst received from sales)
        • BAS (net gst payments to ATO)
      • Purchases
        • Paid (gst paid on purchases)
        • BAS (net gst refunds from ATO)

You are free to change the names to be more explicit if it makes things easier for you :)

  • Liabilities
    • GST
      • Sales
        • GST Received (gst received from sales)
        • BAS Payments (net gst payments to ATO)
      • Purchases
        • GST Paid (gst paid on purchases)
        • BAS Refunds (net gst refunds from ATO)

Gnucash 2.7 or later

The following 3-account structure can be used, and will greatly ease the periodic reporting:

  • GST (placeholder account) (type ASSET/LIABILITY)
    • GST:Collected (from Sales) (type LIABILITY)
    • GST:Paid (from Expenses) (type ASSET)
    • GST:BAS (from periodic BAS) (type ASSET/LIABILITY)

As above, GST collected on Sales and paid on Purchases will be recorded with a split to the above.

Periodically (usually quarterly) the ATO will require reporting of all GSTs collected and paid from business expenses. This can be obtained by running the report Income & GST Statement, which is useful to add GSTs paid and collected, for ATO reporting. This report will obtain source transactions from your business expenses & sales, and will obtain GST splits from the Collected & Paid accounts selected in the Accounts tab.

The GST wholly received/paid to the government can be recorded into GST:BAS.

"Income & GST Statement" sample report
Date Description Total Sales Net Sales GST Sales Total Purch Net Purch GST Purch
03/08/17 Agency $4000 $4000 $1760 $1600 $160
03/09/17 Agency $5050 $5000 $50 $2200 $2000 $200
06/09/17 Marketing $220 $200 $20
Totals $9050 $9000 $50 $4180 $3800 $380

GST receivable for this period = $380 - $50 = $330 (to be claimed back from ATO)

Remittance into my bank = $9050 - $4180 = $4870 (what I initially receive into bank)

Income after expenses, relevant to annual income tax = $9000 - $3800 = $5200

Retrieved from "https://code.gnucash.org/wiki/index.php?title=Alternate_Australian_GST_setup&oldid=16780"