Deductions from Settlement Payment
At the settlement of sale of a block of land, the amount deposited by the Settlement Agent included several deductions for Real Estate agent commission, land tax, Settlement agent fees, GST Withholding, water and land rates. The R/E and Settlement agents' fees included GST, which ended up in GST collected as the amounts were entered as negative when the receipt was entered in 'Receive Money'. Help please, how do I correct this?
Many thanks
Hi LearnerJan
When reporting a transaction in AccountRight for GST purposes the type of transaction plays a part on what side of the reporting it will be listed under. For example, if you record a Receive Money Transaction, with an expense account as a negative this will be reflective as a negative sales value on the GST reports as tax collected.
If that value is intended to be included as Tax paid it would need to be recorded on a payment style transaction i.e. as a Spend Money or Purchase transaction.
