Invoices that include GST and GST-Free Items - Tax Code ?

Hi RJ12,

Thank you so much for your post and welcome to the Community Forum! I'm sorry to hear that you are having issues with your invoices. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response. To accurately set up your AccountRight software to report the correct GST amount for invoices with a mix of GST and GST-free items, follow these steps:

Create GST-Free Items:

• First, ensure that you have created separate inventory or item codes for GST-free items like milk and other items that do not attract GST.

Assign Tax Codes:

• When you create or edit these items, make sure to assign the appropriate tax code. For GST-free items, the tax code should be set to "GST Free" or the equivalent.

Configure Tax Codes for Supplier Invoices:

• When you receive invoices from suppliers, ensure that you assign the correct tax codes to each line item based on whether it is GST-free or not.  should allow you to specify the tax code for each line item on the invoice.

Review Tax Calculation:

• Before finalizing the invoice entry, review the tax calculation to ensure that the software is correctly calculating GST based on the tax codes assigned to each line item.

Check Invoice Total:

• Confirm that the total GST amount calculated by matches the actual GST amount on the invoice. If it does not, double-check the tax codes assigned to each item.

Generate Reports:

• After processing the invoices, generate GST reports from MYOB AccountRight to verify that the GST amounts are correctly recorded. MYOB should offer various reports for tax reporting purposes.

Note: that If you continue to experience discrepancies or have complex tax scenarios, consider consulting with an accountant who is familiar with MYOB AccountRight and can provide guidance on configuring your software correctly.

Regards,
Earl

Hi,

What you need to do is go into the bill.

Select whether the figures you are using are GST exclusive or inclusive. Sometimes you may need to select GST inclusive so the payment to supplier is correct. Final GST amount can sometimes be a few cents different to supplier invoice due to rounding. I don't worry about this because when reporting to ATO, they only look at round numbers.

There is a table below that where  you can separate what is GST and what is GST free by selecting the Tax code. If there is freight, then I would separate that out as well. 

Hope that helps!