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ann75's avatar
ann75
Experienced User
3 years ago

manually Adjust gst for asset purchas

Hello,

 

I had a question regarding GST adjustment, because after the upgrade, we are not able to change the gst amounts in cases where GST is not 10%. I did see a few replies on splitting the expense into GST and GST free.

My question now is if a company asset(car) is purchased , lets say for $77000 and it is allocated to motor vehicle with cap code and gst $7000 which is the 10%. Howver the max gst that can be claimed is only $5000. As I cant manually change the gst amount as earlier-

Can I split the allocation as 1) motor vehicle-cap code-$55000 so that gst is $5000 and 2) motor vehicle- assign gst free code.

Would this work? Do let me know , thanks.

3 Replies

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  • CloverQ's avatar
    CloverQ
    Former Staff
    3 years ago

    Hi ann75 

     

    Changing the GST amount manually is not advisable, this will cause the expected tax total based on the tax code does not reconcile with the actual tax total.

     

    From the software point of view, you can certainly split the purchase amount into the taxable portion and tax-free portion, then record them in separate lines with different tax codes. If you need to record GST adjustments, this Help article will guide you through the process of recording a GST only transaction.

     

    We do recommend confirming with your accountant for the best way to record/account for this purchase based on your business set up and reporting needs.

  • ann75's avatar
    ann75
    Experienced User
    3 years ago

    Thank you Clover for your reply. For a regular business expense or purchase, its easy to split between the gst and gst free. But in the case where I mentioned, it is a car. So I have split the amount in to 2, one part to match the maximum gst I can claim. Howver for the remaning part of the car purchase amount for which I cant record GST, can i assign a gst free code to an asset. Is it a mistake to do this? or will be NTR?

  • CloverQ's avatar
    CloverQ
    Former Staff
    3 years ago

    Hi ann75 

     

    I'm afraid that we are unable to advise which tax code to use exactly, if you are unsure please do check with your accountant for the correct code to use for your business situation.