BAS

[RoyalAshTree]

I'm trying to figure out how to do a journal entry for a BAS payment (April - June).

GST on Sales - $6393

GST on purchases - $6695

PAYG tax withheld - $2780

PAYG income tax instalment - $7314

Fuel Tax Credit (FTC) - $155

Voluntery Withholdings (VWH) - $144

Can someone show me the format using these amounts?

Do I need to set up a clearing account as this is a payment?

Additionally, what is represented by PAYGI/Income Tax Expense on my BAS, is it the PAYG income tax instalment?

Thank You

[Kym__Yeoward]

Hi @RoyalAshTree - welcome to the Community Forum !

I usually set-up a Supplier card for ATO - Aust Tax Office and then create a new purchase bill with a Service layout, dated at the end of the quarter and allocated as:

2-3010 GST Collected [GST on Sales] Dr $6393

2-3030 GST Paid [GST on purchases] Cr $6695

2-1510 PAYG Withholdings Payable [ PAYG tax withheld]  Dr $2780

2-5500 PAYG Income Tax InstalmntsClrg Dr $7314 (new account needed here)

2-3070 Voluntary Withholdings Payable Dr $144

2-3095 Fuel Tax Credit $155 (new account needed here)

6-2125 Rounding Adjustments $0.xx
(new account - for any rounding adjustment for the BAS)

Then click Save as Recurring - to save the template for use again, later.

Finally, click OK to save the entry - then do a Pay Bill when you pay the ATO.

P:.S - yes, the PAYG Income Tax Expense is the PAYG income tax instalment

P.P.S. - You don't have to use a Purchase & Pay Bill to process your payment.

You can instead set-up a Spend Money payment (Save as Recurrent).

Advantage of ing a Purchase & Pay Bill is:

- the ATO BAS liability shows as a single figure on the quarter-end date
- you can track your ATO Payments, through the History tab on the Supplier card, or the Supplier Payments reports. 

Kym Y, CPA & CC

Darwin (Palmerston)

[GDay53]

@RoyalAshTree

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

In 2003 the ATO issued a notice that they are not to be treated as as debtor or a creditor.

As a result setting up a card for them is wrong as it treats them like a debtor or creditor.

What is the best way to do it is create a Integrated Client Account as per this post.

[Kym__Yeoward]

Fair comment. I was not aware of the 2003 ATO advice.

 Kym Y

[RoyalAshTree]

Thank you for that information. I have been asked to include Voluntary Withholdings (VWH) & Fuel Tax Credit (FTC) in my journal entry. From the information you supplied me, this is what I have so far:

2-1310     GST Collected                                 $6,393DR

2-1330     GST Paid                                                              $6,695CR

2-1420     PAYG Withholding Payable             $2,780DR

1-2700     PAYG Income Tax Instalment          $7,314DR

2-1340     Voluntary Withholdings Payable    $   144DR ?

2-1350     Fuel Tax Credit Claimable                                    $  155CR ?

2-1340     ATO Integrated Client Account                                  ?

6-2530     GST Rounding Account                        ?                    ?

I'm not sure how the journal entry should look where I have ?'s:

1. I am I right in saying the Fuel Tax Credit Claimable is a CR

2. I'm unsure if Voluntary Withholdings Payable should only be $140.00 as their is GST on the total (???) or should it just be recorded for the total amount of $144.00. Am I right to say it is a DR?

3. Can you help me figure out the amounts I'm suppose to record in the "GST Rounding Account" and the "ATO integrated Client Account" and if they are a CR or a DR?

I appreciate your feedback...thank you

[GDay53 · Accepted solution]

@RoyalAshTree

1. I am I right in saying the Fuel Tax Credit Claimable is a CR

yes the Fuel Tax Credit at 7D on your BAS should be a CR.

2. I'm unsure if Voluntary Withholdings Payable should only be $140.00 as their is GST on the total (???) or should it just be recorded for the total amount of $144.00. Am I right to say it is a DR?

The amount should be the amounts you pay to the ATO - the GST should already be included in the GST so you would only list the amount minus GST.

3. Can you help me figure out the amounts I'm suppose to record in the "GST Rounding Account" and the "ATO integrated Client Account" and if they are a CR or a DR?

The Integrated client account will  be either Cr if you owe the ATO and Dr if you are due a refund.

The GST Rounding will also vary as it is just removing the cents so you only report whole $ amounts.

The amounts you have for GST Collected, GST Paid, and Fuel Tax Credits will include cents.

Entry the full amount (with cents) into a journal and then enter the GST Rounding just before the ICA and work out the amount of cents and what side of the journal they go on so as to end up with a whole $ amount.

The ICA should always be a whole $ amount, and will balance your journal.

[RoyalAshTree]

Thank you, that has helped greatly.