Incorrect GST

Question

I have found a purchase invoice that was entered as GST inc incorrectly. (It was a charge from overseas and should have been exempt.)

This was in a previous period so it means that I will have overclaimed in my BAS for the GST amount.

How can I fix this please. THere are about 8 invoices I've noticed that have this error.

Can anyone else please?

Many thanks

M

the_doc · Accepted Answer

Hi&nbsp;MelBee&nbsp;&nbsp;2 ways of doing this - the easiest is alter the invoices from GST to EXP - easy - but if you treat each GST quarter or period as a sancrosanct closed off period and signed and sealed - that won't be possible - I don't as things change throughout the year.&nbsp;I always calculate my BAS GST as a Net GST for the current quarter/period + or - any alterations on prior periods - so the net GST at the end of the latest period is netted to zero.&nbsp;If you&nbsp; don't want to do that then you have to do a purchase for that supplier that credits back to GST on purchases the over claimed GST&nbsp;&nbsp;Create a&nbsp; purchase - 2 lines for the company - let's say you overclaimed $100 GST on purchases&nbsp;Make sure the tax incl box is ticked&nbsp;Line 1&nbsp;-1&nbsp; &nbsp; itemx&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Price&nbsp; 1100&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;tax - GST&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(GST will show as -100)Line 21&nbsp; &nbsp;itemx&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Price 1100&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;tax - n-t&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(GST - 0)The total for the invoice will be ZERO.&nbsp;Goto Edit - Recap&nbsp;I used Accounting fees s an item allocated to 6-1102&nbsp;So recap will be debit 100 6-1102&nbsp; &nbsp; &nbsp; &nbsp; credit 100 GST on purchases&nbsp;Record the invoice as zero and all is fixed.&nbsp;The Doc&nbsp;&nbsp;&nbsp;&nbsp;line 1&nbsp;

lrbooks61 · Answer

hi&nbsp;THe easiest way is to do a journal to reverse the purchase amount and reenter correctlyYou can do this in one journal by noting the invoices individually or combined in the one journal entry&nbsp;The thing to remeber is that you need to do the journal including the tax amount&nbsp;So for instance you have purchased goods from overseas for $350 $770 $425 (total $1545)&nbsp;so first reverse the expense that contains GST&nbsp;CR 6-XXXX&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;350 GSTDR 6- XXXX&nbsp; &nbsp; 350&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;FRECR 6-XXXXX&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 770 GSTDR 6-XXXX&nbsp; &nbsp; &nbsp; 770&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;FRECR 6-XXXX&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;425&nbsp; &nbsp;GSTDR 6 -XXXX&nbsp; &nbsp; 425&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;FRE&nbsp;if you combine&nbsp;&nbsp;CR 6-XXXXX&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 1545&nbsp; &nbsp;GSTDR 6-XXXX&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1545&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;FRE&nbsp;Doing this will amend the next BAS report to reflect the change required&nbsp;Hope this helps&nbsp;Lisa&nbsp;

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Incorrect GST

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