ASWatCR's avatar
ASWatCR
Partner
12 years ago
Status:
Open

Spend Money/Receive Money: Indicate how you wish transaction to be displayed for GST

Currently, in Spend Money/Receive Money, there is no option to choose which side of the BAS (GST Collected vs GST Paid) the transaction should be reported on i.e.. if its Spend Money = GST Paid and Receive Money = GST Collected.  Most of the time, this is the correct treatment,  However there are often situations where this is not the case.

 

For example if you receive a refund for a purchase (say a new computer that originally was paid via Spend Money, hence you use Receive Money to record the refund), then it will incorrectly report on the BAS under GST collected, when it should be a reduction in input tax credits. 

 

General journal have the toggle button to be able to choose which side of the BAS the transaction should be reported on.  Why does Spend/Receive money not have this toggle feature also?  The default should obviously be Spend Money = Purchases, Receive Money = Sales, however there should be option to change the GST reporting side if/when needed. I understand there is a work around involving additional tax codes, but I think this just complicates a simple process.

 

Does anyone agree?  Share your thoughts.

 

 "Spend/Receive Money may incorrectly be reported on the BAS"

Banking
BAS
BASLink

8 Comments

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  • ScarlettLP11's avatar
    ScarlettLP11
    Contributing User
    4 years ago

    AccountRight: Spend Money/Receive Money: Indicate how you wish transaction to be displayed for GST

    Has this been resolved ?

  • ASWatCR's avatar
    ASWatCR
    Partner
    11 years ago

    Hi there,

     

    Yes - I am aware of the NEG workaround solution (and thanksfor sharing). 

     

    I guess I would like MYOB to make is simplier  in the first instance (ie no workaround required), by having a toggle button on the Spend/Receive money, so you can record the transaction accurately "on the fly". 

     

    Clients often get confused enough with the existing tax codes already!

     

    If you agree, please vote for it!

  • pawalton's avatar
    pawalton
    Experienced Partner
    11 years ago

    You can also create a NEG tax code which is set up in reverse so when using this you can use the totals to record on correct side in the BAS.  Thats how I do it presently

  • PaperworkPlace's avatar
    PaperworkPlace
    Partner
    12 years ago

    Hi,

    i also reverse original transaction as per Julie's note above. Toggle would enable recording of refunds etc to more accurately relect what actually happened.

  • Julia_Berkhout's avatar
    Julia_Berkhout
    Super Partner
    12 years ago
    Hi, I usually reverse the original transaction by changing preferences, to transactions can't be deleted, which creates a minus transaction (which you can't normally just enter). Then deselect in preferences. You may then change the amount of the minus transaction if you need to, and this way Myob will let you enter your minus transaction and it also records it on the correct side for gst reports and BAS. Hope this helps you for now. Toggle idea definitely would make it easier. Good idea.
  • ASWatCR's avatar
    ASWatCR
    Partner
    12 years ago

    Thanks Julie,  I believe your instructions would work here also  - I will remember that :)

     

    Although there are a few extra steps in the process then if MYOB was to simply add the same toggle button feature as in GJs and you could then choose "on the fly" when processing the "Spend Money/Receive Money" transactions which side of the BAS it should be reported on.

  • Julie_B's avatar
    Julie_B
    Trusted User
    12 years ago

    Hi there - the way I would approach a refund on a purchase is to create a credit note, and then in the Purchases Register / Returns & Debits tab, choose Receive Refund. I believe this then puts the tax into the correct area (from NZ so don't know if your software is any different with this).

     

    Hope this helps ...