P&L Reports & GST

Hi JW007 

If your business is registered for GST, then the PnL should be exclusive of GST.

GST is collected on behalf of the government and is therefore not part of your turnover.  As you receive a credit for any GST you have paid with your purchases, it is also not an expense.

Best regards,

AlanT

Hi

when you buy or sell something with gst on it there are two components to the entry

the expense or income component and the gst component

the expense or income is coded to the gl account in the p&l and the gst is coded to the balance sheet as it is treated as a liability/asset - in myob it is treated as a liability account

gst is a ato transaction that a business accounts for on their behalf . A very basic explanation but that is why your p&l excludes the gst

hope that helps to explain why

lisa