Allocate net GST paid amount

Zoey667

Hi all, 

I am allocating transaction in bank feed, we paid the difference between Collected GST and paid GST, is this should be allocated into PAYG payable? If I paid for couple of months, do I need split it?

Julie_A_C

hi @Zoey667 

 

when you lodge a BAS or IAS is is always best to do an entry from a liability account called ATO Integrated Client Account (with the account type of credit card).  This will become very helpful if you ever need to set up a payment plan with the ATO.

 

When you do the BAS or IAS, you spend, or receive (if getting a refund) to that account.  The total amount spent wiil be what is due.  Lets say $10,000.  This is made up of $20,000 GST collected, $10,000 GST paid, PAYGW of $2,000 and a fuel tax credit being claimed of $2,000.

 

Your allocation there is 

GST Collected liability account $20,000

GST paid liability account       -$10,000

PAYG payable liability account  $2,000

Fuel Tax credit income account -$2,000

 

Then when the payment is made, whether two months worth or one month worth you allocate to the ATO integrated liabilty account.

 

Like I said, very helpful if you made a plane to pay the $10,000 off at $1,000 a month.  Each repayment reduces what the balance sheet says is owing to the ATO, and you reconcile that account as you do a bank amount, but manually, making sure to manually record any interest charged by the ato as an expense, and any interest mention as a remission as income.