Forum Discussion

Contributing User

18 days ago

Solved

Correct allocation of BAS payment when GST refund offsets PAYG

I’m hoping someone can explain the correct way to record a BAS payment in MYOB Business when GST is in a refund position and offsets PAYG. For example, suppose my BAS is: GST on sales (1A):...

waymark
17 days ago
ok yeah it appears to reconcile on the bank transaction but it doesn't end up on the right side of the credits/debits in the GST / PAYG accounts which is annoying so I think a ledger entry to correct it is required which is stupid.

waymark

Contributing User

18 days ago

Thanks. I do have a GST Balance account and a PAYG Withholding Payable account.

Using the numbers above, I’m trying to understand how I would allocate that $1,500 bank transaction (I mis typed Spend Money)

If I allocate:

PAYG Withholding Payable = $2,000
GST Balance = -$500

the transaction totals correctly to $1,500, but MYOB posts the -$500 GST line as a credit, which increases my GST Balance account instead of reducing it.

If I instead make both amounts positive, they total $2,500, so they obviously can’t both be allocated to a $1,500 payment.

When you say “allocate GST to GST Balance and PAYG to PAYG Payable”, could you explain the exact allocation or the missing step? Is there a journal entry or another process that needs to happen first?

I feel like I’m missing something and I've been on this all weekend!

AndrewGFisher
Experienced Cover User
18 days ago
you should have a single line bank transaction for this. You allocate the correct amounts to the correct GL lines
- waymark
  Contributing User
  18 days ago
  Yes, thanks that is exactly what I'm trying to do.
  The only issue is that when I enter a negative amount there, MYOB posts it as a credit to the GST Balance account, which increases the GST balance instead of reducing it.
  
  What I'm expecting after I reconcile this is that both PAYG and GST liabilities go to zero. But the negative value increases it.
  
  My GST Balance account is an Other Current Liability account.
  
  Could you confirm:
  Is your GST Balance account also a liability account?
  Does your negative GST line actually post as a debit in the journal?
  - AndrewGFisher
    Experienced Cover User
    18 days ago