Blog Post
Kym
Back in 2003/04 the ATO issued a memo to all Accounts and Bookkeepers that as far as the GST moneys go they are NOT a DEBTOR or a CREDITOR.
The GST money was allways theirs, it never belongs to any business at any stage. So they should NOT be treated like a Debtor or Creditor. And if that is the case you should not be createing a Supplier card for them, and you should not be be using Invoices or Bills to record payments of GST.
A question has also been raised on how to record the General Interest Charges.
It is very simple first create a Other Expense Account 9-XXXX called ATO General Interest Charges.
Then when you get one record a General Journal as follows:
Then when you pay the ATO using the Spend Money just pay the amount showing in the Liability ICA account.