Forum Discussion

MMM-NZ's avatar
MMM-NZ
Cover User
8 months ago
Solved

GST adjustments in Essentials

Hi folks,

 

Forgive me if this has been asked before.  If so, could someone please point me to the answer, thanks.

 

I'm trying to work out how to make some GST adjustments around the purchase of a company car.  My accountant has given me some advice but doesn't know myob so can't tell me the specifics.

 

Here's the issue:

 

Exisiting company car traded for a new car.  Trade in value $12k

New car cost $23k.

The balance ($11k) is on finance.

 

My accountant says "Add the GST on the sale of the old car to the GST on students fees, and add the GST on the purchase of the new car to the GST on expenses. "  ("Student fees" is our primary income source).

Can anyone help me understand how to do this in Essentials?  

(There's also a secondary issue that we've claimed GST on the finance payments, which we now understand is not correct in NZ tax requirements.  Is there an easy solution to sort this? )

Really appreciate any guidance with this.  Thanks

Mark

 

 

  • Hi MMM-NZ Mark,

    First of all you need to create a loan account for the loan balance in your chart of accounts.

    Then do a spend money transaction adding 4 lines.

    1st line - purchase of new vehicle inc GST

    2nd line - less trade in value in a negative amount

    3rd line - add the cost of PPSR and any application fee

    4th Line - balance goes off to loan account created.

    Amount comes back to NIL transaction total - unless you paid a deposit

     

    With the second issue - you need to again to do a NIL value spend money transaction - coding to total payments made with no GST, and then a second line with the same value in negative with the same amount inc GST. This will pay back the GST you have claimed incorrectly.

     

    Using a spend money transactions makes sure that this transaction is included on the payment basis for GST - which I'm assuming you are on.

     

    Hope this helps.

3 Replies

Replies have been turned off for this discussion
  • jenniek's avatar
    jenniek
    Ultimate Partner

    Hi MMM-NZ Mark,

    First of all you need to create a loan account for the loan balance in your chart of accounts.

    Then do a spend money transaction adding 4 lines.

    1st line - purchase of new vehicle inc GST

    2nd line - less trade in value in a negative amount

    3rd line - add the cost of PPSR and any application fee

    4th Line - balance goes off to loan account created.

    Amount comes back to NIL transaction total - unless you paid a deposit

     

    With the second issue - you need to again to do a NIL value spend money transaction - coding to total payments made with no GST, and then a second line with the same value in negative with the same amount inc GST. This will pay back the GST you have claimed incorrectly.

     

    Using a spend money transactions makes sure that this transaction is included on the payment basis for GST - which I'm assuming you are on.

     

    Hope this helps.

    • Celia_B's avatar
      Celia_B
      MYOB Moderator

      Hi MMM-NZ,

       

      We appreciate jenniek , one of our most important MYOB partners, taking the time to respond to your post on the Community Forum and assisting you with your issue. If our customers read this post and encounter the same problem, it might be a great assistance to them. 

       

      If you have questions or concerns, please do not hesitate to create a new post. We are happy to assist. 

       

      Kind Regards, 

      Cel