Entering Rent Received with Expenses and how it is processed through to BAS

Hi Lisa

Just wanted to say thank you again, I have followed your advice and this is the only way that works.  It's a roundabout way, and I think the software should be able to handle negatives in the receive money window better than it does, particularly with regards to gst, but your advice does work, and at this point after all the time I have spent on it, I am just glad to have come out with a win.

After deleting all my previous transactions and running the BAS again, the reports and figures now make sense. 

I am very grateful, thank you!

Kind regards

Kerri

Hi
the received money should be

4-xxxx income account tax code - gross rent

6-xxxx expense account neg tax code 

eg rent payment received $650

4-xxxx 700.00 (tax code ITR? FRE) 

6-xxxx -50.00 (GST)

that should put the correct amounts in the correct BAS categories 

hope that helps

Lisa

Aratula LRBooks61 

As Residential Rent is Input Taxed, I understand that GST cannot be claimed on Expenses.

Commercial Rent is GST and GST can be claimed on Expenses.

Have a talk to the ATO and/or your Tax Accountant.

Duncan

Also make sure your baslink is set up to capture the tax codes correctly 

Lisa

Hi Lisa

Thank you for your response to my problem.

This is basically what I am doing, with the exception that I use N-T for the rent as the code rather than FRE. 

What is happening in the GST reporting is that the negative portions of the receive money transaction which are the expenses with GST go into the sale value column in negative, with tax collected also as a negative.  This is not necessarily incorrect as these are expenses so they are just being reported as a negative sale with negative gst, and at the end it should work.  However in the BASlink, these go across as negative figures into the sales, and into gst collected.  And the ATO do not accept negatives in the BAS.

We have no sales in this entity that are recorded with gst to offset the above. 

I have tried entering the transactions as a GJ instead, hoping that the affect on the GST reporting and therefore BASlink are not the same, but have found this also does not work.  There are negatives in the N-T values which again just throw the BASlink out completely.

I guess I have always had other sales in the same company with gst as well as income of rent without gst minus expenses with gst and this has offset these negatives. 

Im not sure if there is anything I can set up in BASlink differently? 

Thank you so much for your advice, it is greatly appreciated, I am so frustrated by this.

Thank you

Kerri

Thank you so much Lisa

This makes a lot of sense and is not something I have tried. 

Also agree the N-T code should probably be more like a gst free code in this instance, I just didnt think about it.

I appreciate your thoughts on this very much, I knew there had to be another way, but after all the years of using myob I tend to stick with the way I have always done it.

I will definitely be giving your advice a go.

Kind regards

Kerri