Suspense Account

Question

I have made a payment but I'm still waiting for the boss to get an invoice for the transaction and then I can allocate it to the correct expense. I've been told to put the payment in a suspense account until later because I need to recocile bank statements so I can do the BAS.

I have never used a suspense account and I'm not sure how to set this up or how that will affect the BAS as I don't know if it will have GST on it or not.

Any advise on this?

Thanks

ianchait · Accepted Answer

Hi&nbsp;Kat4&nbsp;&nbsp;I set up a Suspense account as a 2-9999 Liability Account, Type Credit Card. Others like to have it as an Other Expense Account on the P&amp;L 9-9999&nbsp;Set up the Suspense Account, and then code the payment to that account using the N-T tax code. When you find out what it was for, if still in the GST period, you can edit the transaction with the correct account and GST code. If you have already closed the period, or lodged a BAS for the period the transaction is in, you should record a General Journal debiting the correct account, and crediting Suspense, using the current GST quarter date such as 1/10/21.&nbsp;

kat4 · Answer

Thanks Ian, I will try this and see what the Accountant says - hopefully it will be sorted before end of reporting period.

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Suspense Account

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