GST Not Balancing

Question

We operate on a Cash Basis, our GST is out of balance as in the Balance Sheet, less Tax on Recievables is not matching our Summary Report (Cash Basis).

Can anyone make any suggestions on where I should start to look?

Tracey_H · Answer

Hi @FelicityEvelyn

The General ledger report looks at transactions posted to the account and the GST reports look at amounts allocated the GST tax code, so you'll need to look for transactions in one report but not the other. For example, General journals posted directly to the GST paid/collected account.

You can also reconcile the GST accounts in the Reconcile accounts window. Enter $0.00 as the Closing Statement balance and the date as the last day of the period. Bulk tick all transactions. Then use the Receivables with Tax report to untick the unpaid transactions. The out of balance should be the total on the GST cash report.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

FelicityEvelyn · Answer

Thanks for replying Tracey.

I can confirm the ending balance on the General Ledger report is the same as the Balance Sheet.

But the General Ledger report & the GST Cash Basis Detail Report don't match up because the Cash Basis report is based on payments, where the General Ledger Report only shows sales.

The Tax Collected on the GST Detail Accrual Report matches the General Ledger Net Activity.

Tracey_H · Answer

Hi @FelicityEvelyn

Thanks for your post. I would run the General Ledger [Detail] report and compare that with the balance of the GST account on the Balance Sheet. If the ending balance is the same on that General Ledger report you can run the GST Detail report for the same period.

Once you have those two reports you would be comparing the transactions done to both reports. In theory these should balance, if they don't you would be looking for any transactions that appear in the General Ledger report but not in the GST report. You would need to investigate those transactions to find the possible difference.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.