Allocate net GST paid amount

Hi Zoey667,

Thank you for your post, and welcome to the Community forum.

First, it's important to note that the appropriate allocation may vary based on your specific business structure. In this situation, I recommend consulting with your accountant for further information. They can provide guidance tailored to your business structure and can also guide you on whether it should be split and how to accurately reflect these transactions in your accounting records. This is to ensure that your financial transactions are correctly recorded and in compliance with tax regulations.

If there's anything else I can help you with, feel free to let me know. I'm happy to help.

Cheers,

Princess

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.