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): $1,000
- GST on purchases (1B): $1,500
- Net GST: -$500 (GST refund/credit)
- PAYG Withholding (W2): $2,000
Therefore the net amount payable to the ATO is:
PAYG $2,000 less GST credit $500 = $1,500
The part I’m struggling with is recording the $1,500 Spend Money transaction.
If I allocate:
- PAYG Withholding = $2,000
- GST Balance = -$500
the transaction totals correctly ($1,500), but MYOB posts the negative GST amount as a credit to my GST Balance account, which increases the GST liability instead of reducing it.
If I instead enter:
- PAYG Withholding = $500
- GST Balance = $1,000
(or some other combination that totals $1,500), the payment balances, but it doesn’t appear to clear the actual BAS liabilities.
I only have one GST control account (GST Balance) in my chart of accounts. I don’t have separate GST Collected and GST Paid accounts.
So my questions are:
- How should this BAS payment actually be allocated in MYOB Business?
- Should the Spend Money transaction represent the BAS exactly, or is a journal entry required to offset the GST credit against PAYG before recording the cash payment?
- If a journal is required, what should the entries be?
I’m not asking about how the BAS is calculated - the BAS figures are correct. I’m only trying to understand the correct accounting treatment for recording the payment and ensuring both the PAYG and GST liability accounts are cleared out correctly.
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.
