Forum Discussion

Clinton_ELA's avatar
Clinton_ELA
Experienced User
3 years ago
Solved

Balancing GST Reconciliation account due to Subcontractor Payments

We has two Subcontractors set up in Payroll which was pay monthly a fixed amount, plus Super and GST.   The full payment happens through Payroll including the GST amounts.   The GST amounts are l...
  • CloverQ's avatar
    CloverQ
    3 years ago

    Hi Clinton_ELA 

     

    For that you do need to speak with your accounting adviser to discuss the best option/timing to fix it. Until it's resolved, your GST reports of that period will not reflect the GST amounts paid to your sub-contractors. 

     

    You may consider recording journal entries (under your accountant's advise) to reverse the total GST paid so far, then re-record it correctly as a GST only transaction using the guide I linked above. 

     

    I hope this helps. 

CloverQ's avatar
CloverQ
Former Staff
3 years ago

Hi Clinton_ELA 

 

The GST reports pull figures from amounts allocated via tax codes only, any transactions posting to the tax code's linked account directly will cause the tax reconciliation report to be out of balance. In your case, the GST amount paid via Payroll was allocated to the GST linked account directly, it was not recorded via the GST tax code, thus causing the out of balance. 

 

I'd suggest going through this Help page which explains it with more details - Out of balance in Tax/GST Information Reconciliation reports. The suggested solution would be deleting the transactions posting to the linked account directly then re-enter them correctly, if this is not applicable for you, I'd suggest speaking with your accountant for alternative ways of fixing the past figures (there is a way to enter GST only transactions - Non-standard GST amounts), and a better set up for recording GST paid going forward.

  • Clinton_ELA's avatar
    Clinton_ELA
    Experienced User
    3 years ago

    Hi Clover

     

    Thanks for the reply.

     

    Deleting the transactions and re-entering will cause alot of issues inside my Payroll and with the STP reporting etc.

     

    Moving forward we plan to change the way the amounts are captured, but I need to find a different solution to balancing the accounts. 

     

    Because we are nearing the end of the FY, can I leave the out of balance Reconciliation account to be cleaned out at the roll over? 

    • CloverQ's avatar
      CloverQ
      Former Staff
      3 years ago

      Hi Clinton_ELA 

       

      For that you do need to speak with your accounting adviser to discuss the best option/timing to fix it. Until it's resolved, your GST reports of that period will not reflect the GST amounts paid to your sub-contractors. 

       

      You may consider recording journal entries (under your accountant's advise) to reverse the total GST paid so far, then re-record it correctly as a GST only transaction using the guide I linked above. 

       

      I hope this helps. 

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