08-09-2011 12:54 PM
Hello respective members of the forum
My question relates to entering Insurance on MYOB AccountRight Premier V19. I need help on how to enter the following:
Premium - $16253
Fire levy - $4950
GST - $2120.33
Stamp Duty - $2332
Admin Fee- $0.97
Total is $25657
However instead of paying the full amount of the premiums up front, we have taken out a loan for the insurance premium funding. This includes a finance charge and the total amount is payable in 10 equal monthly instalments. So amount financed is $25657 and finance charge is 1394.87 which equals $27051.87 and divide by 10 instalments, means monthly deduction of $2705.19.
Business is registered on GST non cash accrual basis
Your help and comments will be much appreciated.
08-09-2011 04:00 PM
Thanks for your reply. I understood what you have done. I appreciate your response. I wondered if it mattered or make any difference if I entered the transaction as a bill payment for the whole lump sum and then each month when a payment needs to be made, I just offset the amount off from the invoice each time.
Also, if it doesnt matter, which would you recommend using? Thanks again Taz.
08-09-2011 05:45 PM
I'd advise against doing a 'bill payment' but if your accountant has said to do that then it must be done that way; follow her/his instructions, but don't hesitate to ask questions to clarify any given instruction.
Alternatively you could do a general journal entry for the total amount, the debit side being all that listed for the opening credit card entry and the credit side being the $25,657 liability amount; refer attachment.
The total finance charge (interest) needs to be expensed in each of the 10 payments (as they occur) and reported on your BAS, similar to that already illustrated in my previous post; hence the use of FRE Tax Code.
So there are options but as far as a recommendation is concerned, I'd leave it up to your accountant.
21-03-2012 12:55 PM
I have something similar - seven insurance bills that are going to be taken via direct debit over 9 months. I have done the general journal in the same format as the attachment and i will be doing 'spend money' when the money leaves our bank account each month using the 2-1160 code.
My question is, how do you claim the gst for these invoices as i have entered NT on each line of the journal as per the attachment and my accountant is suggesting i use 'spend money' each month using the NT code as well!!
I have looked on the GST detail cash report for this period and none of the invoices i have entered are showing up on this report for BAS purposes.
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