Dear All,
I have recorded a reimbursed payment of $25.95 for an employee's flu shot in May. However, I mistakenly included GST of $2.36, even though this payment should not have GST applied. Fortunately, since we do quarterly BAS reporting, we have not yet paid this amount.
Could you please advise me on how to adjust the GST portion correctly?
Thank you very much in advance.
Hi Ianinfinance,
Totally gets tricky sometimes, but this is definitely fixable. Lucky for you, since you haven’t lodged your BAS yet, you’ve got time to sort it out before it creates any fuss. Fixing it usually comes down to the original transaction. You can either change or delete the transaction and re-enter it. Both options work, but it’s always a good idea to check in with your accounting advisor to figure out the best approach.
Cheers,
Princess
Princess_R Thank you very much for your reply.
Unfortunately, I’m unable to change or delete the transaction, as it is linked to other payments.
Therefore, I was wondering whether it would be possible to make the adjustment using the General Journal, and if so, could you kindly advise me on how to proceed?
If you want to do a general journal tick the box purchase, do a credit to the expense account that original entry went to coded GST, and the do a debit to the same expense account coded GST Free.
The memo would be 'to correct entry processed as GST instead of GST Free.
The other option if you haven't already reconciled the payment in your bank rec (which I assume was done as an ABA file), is to first delete the total ABA file, go in to prepare electronic payment, drill down on the entry, change it, go back to prepare electronic payments, make sure to date it correctly to when it came out of bank, then choose Bank file, once you get to the window when you usually save it just cancel out, as you have already sent it off to bank.
Ianinfinance Princess_R Julie_A_C
Ian,
For future reference.
I understand the ATO allows up to 5 years to claim a GST Credit (or make minor adjustment).
This is done in the current BAS.
A revised BAS is then not lodged.
Have a look at the ATO website for the upper limit of Adjustments in a current BAS.
Duncan
