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MelBee's avatar
MelBee
Experienced Cover User
3 years ago
Solved

Incorrect GST

I have found a purchase invoice that was entered as GST inc incorrectly.  (It was a charge from overseas and should have been exempt.) This was in a previous period so it means that I will have over...
  • The_Doc's avatar
    The_Doc
    3 years ago

    Hi MelBee 

     

    2 ways of doing this - the easiest is alter the invoices from GST to EXP - easy - but if you treat each GST quarter or period as a sancrosanct closed off period and signed and sealed - that won't be possible - I don't as things change throughout the year.

     

    I always calculate my BAS GST as a Net GST for the current quarter/period + or - any alterations on prior periods - so the net GST at the end of the latest period is netted to zero.

     

    If you  don't want to do that then you have to do a purchase for that supplier that credits back to GST on purchases the over claimed GST 

     

    Create a  purchase - 2 lines for the company - let's say you overclaimed $100 GST on purchases

     

    Make sure the tax incl box is ticked

     

    Line 1 

    -1    itemx                                         Price  1100                                               tax - GST         (GST will show as -100)

    Line 2

    1   itemx                                           Price 1100                                                 tax - n-t           (GST - 0)

    The total for the invoice will be ZERO.

     

    Goto Edit - Recap

     

    I used Accounting fees s an item allocated to 6-1102

     

    So recap will be debit 100 6-1102        credit 100 GST on purchases

     

    Record the invoice as zero and all is fixed.

     

    The Doc

     

     

     

     

    line 1 

LRBooks61's avatar
LRBooks61
Ultimate Cover User
3 years ago

hi

 

THe easiest way is to do a journal to reverse the purchase amount and reenter correctly

You can do this in one journal by noting the invoices individually or combined in the one journal entry

 

The thing to remeber is that you need to do the journal including the tax amount

 

So for instance you have purchased goods from overseas for $350 $770 $425 (total $1545)

 

so first reverse the expense that contains GST

 

CR 6-XXXX             350 GST

DR 6- XXXX    350         FRE

CR 6-XXXXX              770 GST

DR 6-XXXX      770         FRE

CR 6-XXXX                 425   GST

DR 6 -XXXX    425             FRE

 

if you combine 

 

CR 6-XXXXX                  1545   GST

DR 6-XXXX           1545             FRE

 

Doing this will amend the next BAS report to reflect the change required

 

Hope this helps

 

Lisa

 

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